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A jail sentence and heavy fines were declared for fake tax documents.

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4 months ago

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In an effort to strengthen the anti-tax fraud and evasion procedures, the Federal Board of Revenue (FBR) has released a notification detailing important changes to the Sales Tax Act, 1990.

The decision to create a specialised section tasked with looking into tax fraud cases is among the major improvements. The new wing will include a Digital Forensic Unit and an Intelligence and Analytical Unit to improve the enforcement of tax rules.

People who don’t file tax returns could get summonses or notices under the modified laws. A steep fine of either Rs 25,000 or 100% of the tax amount, whichever is higher, would be imposed for submitting forged or fraudulent documentation. On top of that, filing false tax returns can land you in jail for up to five years.

Severe fines for tax evasion have also been established by FBR. Offenders risk a maximum five-year prison sentence for tax evasion of less than Rs. one billion. A fine equivalent to the amount evaded is imposed in addition to a 10-year prison sentence for amounts over Rs-1 billion.

Under the amended definition, purposeful under-declaration of taxes or underpayment of dues are now included, as well as the filing of fake documents and information concealment. The revised law will also closely examine claims of excess tax credits against duty paid.

All matters concerning tax fraud will be handled by the recently established Tax Fraud Investigation Wing. The ability to obtain electronic invoices from people, organisations, or businesses will be provided by this wing. An automated system makes it possible to verify these invoices in real time, guaranteeing increased accountability and transparency.

As a major step towards preventing tax fraud and improving the integrity of Pakistan’s tax system, these strict procedures and the creation of the special investigation wing are being implemented.

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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3 days ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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3 days ago

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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