Pakistani area residents inspect a destroyed building a day after a suicide attack in Peshawar on September 7, 2008.
Pakistani area residents inspect a destroyed building a day after a suicide attack in Peshawar on September 7, 2008.
Pakistani area residents inspect a destroyed building a day after a suicide attack in Peshawar on September 7, 2008.
Pakistani area residents inspect a destroyed building a day after a suicide attack in Peshawar on September 7, 2008.

Pakistan blast death toll hits 35


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PESHAWAR // The death toll in a massive suicide blast in Pakistan's militant-plagued northwest reached 35 as more bodies were pulled from the rubble of damaged buildings, police said today. Yesterday's attack demonstrated the severe militant threat facing the Muslim nation, whose lawmakers the same day overwhelmingly elected Asif Ali Zardari, the widower of slain ex-prime minister Benazir Bhutto, as president.

Mr Zardari has vowed to be tough on militancy, a stance that plays well in Washington, where US officials worried about rising violence in neighbouring Afghanistan have pushed Pakistan to clamp down on extremist havens in its borders. Nonetheless, Mr Zardari has a fine line to walk. Coming down too hard on insurgent activity risks inflaming Pakistani public opinion and even a tribal uprising. Dozens were wounded in yesterday's attack, in which an explosives-packed pickup truck blew up at a police checkpoint on the outskirts of Peshawar, the capital of the North West Frontier Province. Police said a huge amount of explosives was used in the blast, signalling the attacker might have been aiming at a more important target.

Television footage showed a blast crater one metre deep, destroyed vehicles and pieces of debris scattered across a large area. Some buildings in a nearby market collapsed, leading civilians to dig frantically with their hands to find survivors. A teacher and school guard were among the five dead newly recovered from the rubble, police official Rashid Khan said. Today, the Election Commission said Mr Zardari's win had been certified. Newspaper editorials marking Mr Zardari's ascent noted that a recent US-led ground assault in a Pakistani tribal region along the Afghan border signalled American impatience with Pakistan's progress in battling insurgents.

Far from being confident, however, the opinion pieces warned that Zardari is yet unproven and still tainted by a history of corruption allegations. "What Mr. Zardari needs to do is to dispel the impression that he is a political wheeler-dealer who is adept at making back room deals but unable to rise to the requirements of statesmanship," said an editorial in Dawn, a leading Pakistani English-language paper.

*AP

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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