Latest news with #SenateStandingCommitteeonFinanceandRevenue
Express Tribune
2 days ago
- Business
- Express Tribune
Teachers applaud revival of tax exemptions
The teaching community in the federal capital has welcomed the Senate Standing Committee on Finance and Revenue's approval of the Income Tax (Second Amendment) Bill 2025, which aims to reinstate critical tax relief for salaried individuals, especially teachers and researchers. The Senate panel, chaired by Senator Saleem Mandviwalla, endorsed the bill, focusing particularly on reversing recent tax burdens that had led to significant salary deductions for teachers. This development follows the federal cabinet's earlier decision, dated March 26, 2025, to reinstate the 25% tax rebate for full-time teachers and researchers. The rebate had been abruptly discontinued four months prior, drawing widespread criticism from the education sector. Reacting to the committee's approval, Fazal-e-Maula, Chairman of the Joint Education Action Committee Teachers, praised the move as a "positive step," but noted that more comprehensive measures were needed. "While the restoration of the 25% tax rebate is appreciated, it is only a small relief. The government must go a step further and introduce an education allowance," he said. He also advocated for aligning teachers' salaries with those of other government employees in equivalent grades. Prof Danish Yaseen, Joint Secretary of the Federal Government College Teachers Association (FGCTA), echoed similar sentiments. "After restoration of the 25% rebate, teachers now stand where they previously were. But the government should consider further incentives, as is done in other countries. Teachers should not be burdened with financial worries, only then they can foster a peaceful and focused classroom environment."
Business Recorder
3 days ago
- Business
- Business Recorder
Senate body approves IT (Second Amendment) Bill 2025
Islamabad: The Senate Standing Committee on Finance and Revenue Thursday approved Income Tax (Second Amendment) Bill 2025, seeking report on teachers' salary tax deductions. The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, approved the Income Tax (Second Amendment) Bill 2025. The Committee focused on the withdrawal of tax exemptions for salaried individuals particularly teachers whose salaries faced significant deductions. Senator Mohsin Aziz suggested expediting the refund or adjustment process. Senator Saleem Mandviwalla directed the Federal Board of Revenue (FBR) to submit a detailed report identifying affected teachers and the status of their refunds, emphasizing that failure to return deducted amounts undermines the law's intent. The FBR Chairman assured compliance and supported the committee's recommendations. The committee also reviewed budgetary allocations and utilization under the Public Sector Development Programme (PSDP) for 2024 25. While the Planning Commission raised concerns over lapsed project budgets, Finance Ministry officials clarified no funds had lapsed and over 50 percent of authorized funds had already been disbursed. Senator Mandviwalla requested written figures and recommended summoning the Finance Ministry and relevant departments to ensure transparency. In discussions on the proposed barter trade mechanism between Pakistan and Iran, Senator Mandviwalla inquired about the absence of a formal net-off settlement mechanism and urged concerned departments to develop a clear procedure. The committee emphasized relaxing existing restrictions and expanding the list of tradable items. Senator Mandviwalla asked stakeholders to submit proposals for new items and directed authorities to resolve operational issues such as limited customs hours and storage space at NLC terminals in Quetta. He also recommended forming a local committee in Quetta to address traders' concerns on the ground. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
Ex-FATA/PATA: Rs45bn GST exemptions under scrutiny
ISLAMABAD: The government is reviewing Rs45 billion tax exemptions granted to erstwhile tribal areas in the coming budget (2025-26). It is learnt that the Federal Board of Revenue (FBR) is likely not to extend sales tax exemption to erstwhile tribal areas beyond June 30, 2024. Through Finance Act, 2024 exemption available to ex-FATA/PATA (import/ supply of goods and supply of electricity) was retained till June 30, 2025. FATA, PATA regions: No law under study to grant tax relief: Aurangzeb However, the exemption on import shall be available subject to presentation of pay order instead of post-dated cheque which would be released on furnishing (within six months) of the consumption/installation certificates issued by the concerned Commissioner. During last meeting of the Senate Standing Committee on Finance and Revenue, the committee had endorsed a proposal of the business community for not extending sales tax exemption in erstwhile tribal areas beyond June 30, 2025. The sales tax exemption to erstwhile tribal areas would expire on June 30, 2025. The chairman of the committee, Saleem Mandviwalla was of the view that the formal sectors such as steel, ghee/cooking oil and others have disadvantageous position due to this exemption. 'We are well aware of the issue and taken the decision and we will make recommendation,' he added. Copyright Business Recorder, 2025
Express Tribune
06-05-2025
- Business
- Express Tribune
LCCI presents key budget proposals to Senate
Listen to article Senior Vice President of the Lahore Chamber of Commerce and Industry Engineer Khalid Usman has presented key Budget Proposals to the Senate Standing Committee on Finance and Revenue which was chaired by Senator Saleem Mandviwalla. Engineer Khalid Usman in his address said that the upcoming Federal Budget 202526 holds critical importance for Pakistan's economic revival and the LCCI had prepared an in-depth budget document after thorough consultations with its members. LCCI leaders stressed the importance of framing policies that support industrial growth, trade expansion and macroeconomic stability. A key demand presented was to broaden the tax net instead of putting additional burdens on existing taxpayers. He commented that restructuring the tariff system is essential to promote industrialisation. He advocated adopting a cascading tariff structure whereby lower duties are applied to raw materials, moderate duties on semi-finished goods and higher rates on finished products. Such a model would encourage local value addition and discourage excessive reliance on imports. They said that the LCCI firmly opposed the Ministry of Commerce's proposed blanket 0 to 20% tariff regime, calling it detrimental to domestic industrial competitiveness. On the issue of taxation, LCCI official the alignment of FBR's SME definition with SMEDA's, recommending that enterprises with an annual turnover of up to Rs800 million be classified as SMEs, instead of the current Rs250 million limit. The proposed that the cascading principle should also be applied to sales tax, with 0% on raw materials, 5-8% on intermediate goods and 18% on finished products.
Business Recorder
01-05-2025
- Business
- Business Recorder
Erstwhile tribal areas: Senate panel endorses proposal for not extending sales tax exemption
ISLAMABAD: The Senate Standing Committee on Finance and Revenue, Wednesday, endorsed a proposal of the business community for not extending sales tax exemption in erstwhile tribal areas beyond June 30, 2025. The sales tax exemption to erstwhile tribal areas would expire on June 30, 2025. Chairman of the committee Saleem Mandviwalla was of the view that the formal sectors such as steel, ghee/ cooking oil and others have disadvantageous position due to this exemption. 'We are well aware of the issue and taken the decision and we will make recommendation,' he added. The committee met here on Wednesday to initiate for pre-budget 2025-26 consultations with stakeholders including Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Chambers and Associations. Jawed Bilwani, president Karachi Chamber of Commerce and Industry (KCCI) highlighted the special tax regime in the ex-FATA region and pointed out that a major portion of tea imports is routed through this region due to the significantly lower taxes. He also highlighted the issue of low duties and taxes on the raw materials of the plastic industry, particularly polyethylene for manufacturers. He reiterated that manufacturers import more raw materials due to these low taxes and then sell them at higher prices. Moreover, he echoed his concerns about the refund of sales tax after nine months despite the Federal Board of Revenue (FBR)'s claims of refunds within 72 hours. He stated that the late refunds and advance taxes have increased the cost of doing business manifold. Mandviwalla stated that the FBR had admitted before the committee the 72-hour refund policy of sales tax. The committee decided to take up the matter in the upcoming budget meetings. Exporters recommended to reinstating the zero-rating of local supplied to registered exporters under export facilitation scheme (EFS) to ease down the liquidity pressure and smooth operation. Further, they proposed to consider zero-GST on utilities (power and gas) to exporters registered in the EFS to facilitate the exports ensuring availability of required/ adequate liquidity and smooth cash flow, to boost the confidence of exporters to enhance their exports and strengthen their business ties with the foreign counterparts to capture true business potential. Business community stated that Finance Act 2024 shifted exporters from the Final Tax Regime (FTR) to the Income Tax Regime (NTR) which created significant compliance burden. It also proposed to restore the FTR for exporters to simplify on FBR audits, considering its limited capacity. This will enhance the ease of doing business and promote growth in documented sectors and support. The Lahore and Gujranwala Chambers of Commerce and Industry raised the matter of advance tax on exports. They apprised that the State Bank charged one percent tax plus an additional one percent tax on remittances. They proposed the rationalisation of the said tax. Furthermore, Sialkot Chamber of Commerce and Industry highlighted the expulsion of tribunals for matters in which sales tax exceeds up to Rs2 million and income tax up to Rs1 million, expressing concern over the lack of proper appellate forums for small taxpayers. The Committee assured the chamber that it would take up the matter in the upcoming budget. Additionally, the Sialkot Chamber emphasised the need to cater to the growing number of young entrepreneurs, with around 600 to 700 new registrations recorded each year, highlighting the importance of supportive policies for this emerging business segment. Additionally, the Rawalpindi Chamber of Commerce and Industry proposed a 15 percent GST in the upcoming budget to provide ease to the dying industry. President RCCI Usman Shaukat also proposed providing tax incentives to export-based industries upon completion of export targets, in addition to providing necessary financial facilities to small and medium enterprises. The Islamabad Women Chamber of Commerce and Industry (IWCCI) urged the government to allocate dedicated funds for women entrepreneurs in the upcoming budget, emphasising the need to create a more supportive environment for women-led businesses. The chamber also called for the reduction of the existing Rs5 Crore revenue threshold for corporate women, arguing that the current limit poses a barrier to entry for many capable women entrepreneurs seeking to formalise and expand their businesses. Paper and Stationery Association called for the withdrawal of taxes on stationery items. They stated that the federal government had promised in the previous year to eliminate the existing taxes on stationery items in the following budget cycle. The association urged the government to honour its commitment, stressing that these taxes should be withdrawn immediately to ensure affordability and accessibility of essential educational materials for students across the country. President Faisalabad Chamber of Commerce said that Information Technology (IT) is shifting to Turkey and UAE due to lack of gateway for payment abroad, which would directly hit the exports remittances. The committee was informed that 30 IT companies from Faisalabad had shifted to Turkey and UAE so far. This would directly impact the IT exports remittances and would not come to the country, he added. The country is celebrating $2.4 billion IT exports, said the president, adding that currently, the potential is $10 billion and can be increased to $20 billion, if all these issues were resolved. In attendance were senators, Sherry Rehman, Anusha Rahman Ahmad Khan, Fesal Vawda and representatives of Rawalpindi, Karachi, Sialkot, Faisalabad and Lahore Chamber of Commerce and Industry. Copyright Business Recorder, 2025
