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Business Recorder
23-05-2025
- Business
- Business Recorder
NA panel defers Income Tax (Second Amendment) Bill, 2025
ISLAMABAD: The Standing Committee on Finance on Thursday deferred 'The Income Tax (Second Amendment) Bill, 2025' — a government bill — due to the absence of the Chairman of the Federal Board of Revenue (FBR), whose presence was deemed essential for deliberations on the matter. At the start of the meeting, FBR Member Inland Revenue Policy informed the committee that the FBR chairman is busy with IMF team - Prime Minister office and unable to attend the meeting. Chairman Syed Naveed Qamar responded that, 'I am just coming from the IMF lunch and FBR chairman and Finance minister were not present there. Do not give us excuses. We will not take up matters of Revenue Division', he added. Naveed Qamar also directed the Revenue Division to enhance and automate the tax refund system to ensure timely disbursement of refunds, particularly for exporters and local manufacturers. Syed Naveed Qamar observed double taxation and policy inconsistencies within the Revenue Division. 9 bills including income tax, dumping duty passed by NA The committee considered The Parliamentary Budget Office Bill, 2025, and appointed a Sub-Committee to further examine the provisions of the bill and provide recommendations. The 13th meeting of the Standing Committee on Finance and Revenue was convened Thursday at the Parliament House, Islamabad, under the chairmanship of Syed Naveed Qamar, MNA/Chairman of the Committee. The Committee considered 'The Parliamentary Budget Office Bill, 2025.' The bill was introduced by Rana Iradat Sharif Khan, MNA, who provided a comprehensive briefing on the objectives and rationale behind the proposed legislation. The bill aims to establish a well-structured and independent Parliamentary Budget Office (PBO) to enhance the role of Parliament in financial oversight and governance. The Committee expressed unanimous support for the bill, acknowledging the importance of institutionalizing expert and non-partisan analysis of budgetary matters. The chairman highlighted that the proposed PBO, drawing from international best practices, would significantly strengthen legislative scrutiny over fiscal policy, government expenditures, revenue forecasts, and overall fiscal sustainability. He added that the establishment of the PBO would serve as a critical resource for lawmakers, enabling informed decision-making by providing robust analytical support, economic evaluations, and evidence-based insights. Following a detailed discussion, the Committee decided to appoint a Sub-Committee to further examine the provisions of the bill and provide recommendations. During the meeting, the President of the Karachi Chamber of Commerce and Industry (KCCI) presented a series of proposals for the upcoming national budget. He expressed serious concerns regarding the Finance Act, 2024, particularly the policy shift that moved exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR). He urged the Committee to recommend the reversal of this policy shift and to reinstate the Final Tax Regime for export-oriented businesses to ensure their continued viability and competitiveness. Furthermore, he called for the restoration of zero-rating on local supplies to support industrial growth and improve the cost-efficiency of production in the domestic economy. Chairman Syed Naveed Qamar took note of issues raised by KCCI and observed persistent challenges such as double taxation and policy inconsistencies within the Revenue Division. He emphasized the urgent need for systemic reforms within the FBR and called upon the institution to adopt a taxpayer-friendly approach. The chairman strongly advised the FBR to eliminate malpractice, simplify procedures, and develop a fair and transparent taxation framework to restore the confidence of both the business community and the general public in the country's revenue administration. Syed Naveed Qamar directed the Revenue Division to enhance and automate the tax refund system to ensure timely disbursement of refunds, particularly for exporters and local manufacturers. He underscored the need for expedited refunds as a key measure to improve business liquidity and foster economic growth. The chairman advised the FBR to hold a consultative visit to the Karachi Chamber of Commerce and Industry (KCCI) to directly engage with stakeholders and address their concerns comprehensively. A senior economist presented a pre-budget analysis before the Committee. The Committee deferred representation by Oil Refining Industry regarding Proposals for Taxation Reforms in Sales Tax, for the next meeting of the Committee. The Committee unanimously approved the minutes of its previous two meetings. The meeting was attended by Omar Ayub Khan (on Zoom), Rana Iradat Sharif Khan, Syed Sami Ul Hassan Gilani, Dr Mirza IkhtiarBaig, Dr Nafisa Shah, Sharmila Sahiba Faruque Hashaam, Muhammad Jawed Hanif Khan, Arshad Abdullah Vohra, Muhammad Ali Sarfraz (on Zoom), Muhammad Mobeen Arif, Usman Mela, and Shahida Begum, MNAs. Copyright Business Recorder, 2025
Business Recorder
01-05-2025
- Business
- Business Recorder
NA body adopts report on Tax Laws (Amendment) Bill: Restrictions on transactions of non-filers from July 1
ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue, Wednesday, adopted the report on Tax Laws (Amendment) Bill, 2024 to impose restriction on economic transactions of non-filers through Finance Bill 2025-26 from next fiscal year. The threshold proposed for valuation of immovable properties of non-filers has been abolished under the revised Tax Laws (Amendment) Bill, 2024. The revised Tax Laws (Amendment) Bill, 2024 was presented before the committee here on Thursday. Tax laws bill may be part of FY26 Finance Bill: Non-filers to face curbs on economic deals From July 1, 2025, the government will impose strict restriction on economic transactions of non-filers through the next Finance Bill. During the committee proceedings, the committee adopted the report of the sub-committee and clear the amendments made by the Federal Board of Revenue (FBR) in the Tax Laws (Amendment) Bill, 2024. On the conclusion of the meeting, Syed Naveed Qamar, chairman of the committee told Business Recorder that now the Bill would be made part of the Finance Bill 2025-26 and it would be debated clause by clause during review of the finance bill (2025-26). The adoption of the report of the sub-committee would result in detailed review of the bill during the budget finalisation exercise for 2025-26, he added. During the last meeting, the committee had deferred new Section 114C (restriction on economic transactions of non-filers) of Tax Laws (Amendment) Bill, 2024 till the FBR demonstrates necessary technological changes in its online systems. The bill will introduce measures to detect and take corrective measures against under-declarations of income/sales by fetching taxpayers banking system data and match with the declaration filed with the FBR. The chair emphasised that the Revenue Division should revisit Clause (5)(a) to provide greater clarity on the term 'cash and equivalent assets.' He also directed the Revenue Division to finalize the updated online system/mobile app and present a demonstration to the committee within two months. Sub-committee recommended in section 114C, in clause (1) (b) the word 'Board' be replaced with the word 'Federal Government'. The Federal Government may determine the value threshold for transactions affected by this restriction to ensure that property transactions conducted by common citizens and the lower- and middle-income class—particularly first-time property buyers or those purchasing their primary residential property—are not impacted. As per the direction of the Sub-Committee, the FBR has shared aggregate data on property transaction values for FY 2023-24. According to 'Tax Laws (Amendment) Bill, 2024', non-filers will be prohibited from purchasing, booking, registration of vehicles over 800cc, acquiring property beyond a specified limit, and making stock purchases beyond a certain threshold. Additionally, non-filers will not be able to open bank accounts, and there will be restrictions on the number of banking transactions they can conduct. However, non-filers will still be allowed to purchase motorcycles, rickshaws, and tractors. The purpose of the bill also imposed restriction on economic transaction by certain persons such as 'any person, authorized to sell securities including debt securities or units of mutual funds including a person authored to open and maintain account or clear such transactions, shall not sell, open an account or clear sale of securities, mutual funds, to an ineligible person being an individual or an association of persons.' Copyright Business Recorder, 2025
Business Recorder
28-04-2025
- Business
- Business Recorder
Tax laws bill may be part of FY26 Finance Bill: Non-filers to face curbs on economic deals
ISLAMABAD: The government is likely to make Tax Laws (Amendment) Bill, 2024 part of the next Finance Bill (2025-26) to impose restriction on economic transactions of non-filers, it is learnt. The Federal Board of Revenue (FBR) has yet not demonstrated necessary technological changes in its online systems for enforcement of new Section 114C (restriction on economic transactions of non-filers) of Tax Laws (Amendment) Bill, 2024. FBR Chairman Rashid Mahmood Langrial had requested the committee to give two months' period for development of technological tools for the implementation of this section 114C dealing with the restriction on economic transactions of certain persons. In February 2025, National Assembly Standing Committee on Finance had deferred this section till the FBR make changes in its online systems. Amended tax laws to tighten noose on non-filers At that time, former Minister of State for Finance, Ali Pervaiz Malik categorically conveyed to the committee that we will come back to the committee with the technological solution for implementing new section 114C (restriction on economic transactions of non-filers) of Tax Laws (Amendment) Bill, 2024. He categorically conveyed to the committee that deferment of the new section (bar on transfer of immovable property) would not stop the FBR from the ongoing exercise of documenting wealthy people and non-filers of income tax returns. 'We used non-filers as revenue spinners and never prosecuted them. The tax system cannot operate like that in our country', he said. The FBR has visibility of all kinds of immovable property transactions data and we would continue to take action against non-filers, he said. The committee had recommended that the FBR should give a demonstration of the updated online system/application before further consideration of section 114C of Tax Laws (Amendment) Bill, 2024. The FBR has committed to provide the demonstration to the committee. One option regarding the timing is to reconsider this section as part of the budget process in June 2025. During the intervening period, the FBR may focus on preparing the necessary technological changes, ensuring maximum user-friendliness and facilitation for taxpayers/users, and mitigating any unintended consequences, sub-committee recommended. The committee also issued instructions to National Database and Registration Authority (Nadra), provincial excise departments and provincial land authorities to facilitate FBR in developing the new system, FBR chairman added. The FBR chairman said that transactions made by a non-resident person or a public company would not be covered under the Tax Laws (Amendment) Bill, 2024. The chair emphasised that the Revenue Division should revisit Clause (5)(a) to provide greater clarity on the term 'cash and equivalent assets.' He also directed the Revenue Division to finalise the updated online system/mobile app and present a demonstration to the committee within two months. Copyright Business Recorder, 2025
