LAHORE DIVISION

Lahore | ReNews Pakistan The Punjab Revenue Authority (PRA) has decided to introduce a risk based audit system under which a comprehensive risk register will be established to monitor taxpayers, suppliers and financial transactions. Under the proposed framework, suspicious or high risk claims may be deferred, rejected or selected for audit. However, taxpayers will retain the right to a fair hearing and appeal before any action is taken against them. The Finance Bill 2026 also proposes a significant increase in penalties. Under the new measures, failure to issue a tax invoice could result in a fine of Rs 500,000 for a first violation, while repeat offences may attract penalties of up to Rs1 million. A separate fine of Rs 500,000 has also been proposed for tampering with or bypassing the e invoicing system. In addition, the PRA has proposed raising the financial threshold for initiating criminal proceedings in tax fraud cases from Rs 10 million to Rs 50 million. Sources said the Finance Bill is also considering increasing the sales tax rate from 5 percent to 8 percent for a range of service sectors. These include restaurants, catering services, tour operators, property dealers, architects, rent a car services, gyms, fitness centres, laundry services, warehousing, equipment rental businesses, tax consultancy firms and real estate management services. Different tax rates have also been proposed for information technology services based on the mode of payment. According to the proposal, IT services receiving payments through digital channels would be subject to an 8 percent sales tax, while services paid through other means would be taxed at 16 percent. The bill further proposes the imposition of an 8 percent sales tax on event management services without the availability of input tax adjustment.

Lahore | ReNews Pakistan Director General Pakistan Airports Authority Air Vice Marshal Zeeshan Saeed visited Lahore Airport to review the ongoing expansion project, inspecting development work, construction progress and various phases of the scheme. During the visit, the DG PAA met NESPAK Managing Director Kaukab Hussain Bhatti and Project Director Tauqeer Iqbal. A high level meeting was also held on the project, where officials briefed him on the current status of the Lahore Airport expansion project, technical matters, challenges and upcoming phases. The meeting was informed that the Lahore Airport expansion project holds significant importance for improving passenger facilities, increasing airport capacity and upgrading infrastructure in line with international standards. Once completed, the project is expected to reduce passenger pressure at Lahore Airport, enhance operational capacity and improve aviation services. Air Vice Marshal Zeeshan Saeed said the timely completion of the Lahore Airport expansion project was of national importance and all relevant institutions must perform their responsibilities in an effective and coordinated manner. He directed officials to further accelerate work on the project to ensure its completion within the stipulated timeframe. Zeeshan Saeed also inspected different sections of the project and expressed satisfaction over the ongoing work. He urged NESPAK and other officials associated with the project to maintain quality, pace and transparency at all stages so that the project could be completed according to its set targets. On the occasion, NESPAK Managing Director Kaukab Hussain Bhatti assured full cooperation for the timely completion of the Lahore Airport expansion project. He said the technical and administrative stages of the project were being advanced effectively. At the conclusion of the meeting, officials of the Pakistan Airports Authority and NESPAK reaffirmed their commitment to completing the Lahore Airport expansion project at the earliest and described it as an important milestone for the country’s aviation sector, passenger facilitation and Lahore’s urban infrastructure.

Lahore | ReNews Pakistan An intra court appeal has been filed in the Lahore High Court against the collection of capacity charges in electricity bills, arguing that consumers are being charged for electricity that was neither generated nor used. In the appeal, the petitioner has made the federal government, NEPRA, PPIB and CPPA parties to the case. The petition states that the recovery of capacity charges through electricity bills is unconstitutional, illegal and against public interest, especially at a time when ordinary consumers are already burdened by expensive electricity, taxes and additional charges. The petitioner has maintained that under the name of capacity charges, consumers are being forced to pay for electricity that was not actually consumed. According to the petition, these charges included in electricity tariffs are placing an unnecessary financial burden on consumers, making judicial review of the system essential. The appeal has requested the Lahore High Court to set aside the single bench’s decision under which the earlier petition was dismissed. The petitioner has also urged the court to immediately stop the recovery of charges for electricity that was neither produced nor consumed. The petition further seeks a constitutional and legal review of electricity tariffs, capacity charges and the related pricing mechanism to determine whether such charges can lawfully be recovered from consumers. According to experts, capacity charges have become one of the most important and controversial issues in Pakistan’s energy sector. These charges are linked to payments made to power plants for their available generation capacity. However, consumers argue that the financial burden of these payments is being directly passed on to the public through electricity bills. Following the filing of the appeal, the upcoming proceedings in the Lahore High Court have gained significance, as a possible court ruling could have major implications for electricity consumers, the energy sector and government policy.