Latest news with #TaxLaws(Amendment)Bill
Business Recorder
3 days ago
- Business
- Business Recorder
Cash withdrawals from banks: FBR proposes raise in WHT for non-filers
ISLAMABAD: The Federal Board of Revenue (FBR) has proposed to raise withholding tax on cash withdrawal from the banks by non-filers from 0.6 percent to 1.2 percent to generate additional revenue during 2025-26. Sources told Business Recorder that the proposal is part of the government's policy to penalise non-filers of income tax returns. However, the government is also trying to impose financial restrictions on non-filers of income tax returns from July 1, 2025. Under the proposal, the government will abolish the category of non-filers and 'ineligible persons' would not be able to carryout any kind of financial transactions. The National Assembly Standing Committee on Finance and Revenue, had 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. From July 1, 2025, the government will impose strict restriction on economic transactions of non-filers through the next Finance Bill. FBR will now share income tax returns data with banks Sources said that the government may not abolish all withholding taxes for non-filers in one go due to revenue implications. Therefore, the doubling of withholding tax rates on cash withdrawal from the banks by non-filers is also under consideration. Presently, over Rs 50,000 cash withdrawals by non-filers, in a single day, through credit cards/ATMs is also be subjected to 0.6 percent withholding tax. The Finance Act 2023 had reintroduced tax collection on cash withdrawals from Non-ATL persons by banks. The section 231AB requires every banking company to deduct advance adjustable tax at 0.6 percent from a person whose name is not appearing in the Active Taxpayer List, at the time of making payment for sum total of cash withdrawal (aggregate cash withdrawal) in a single day exceeding Rs 50,000. Cash withdrawals made on credit cards or from ATMs were also be covered by this provision. If the aggregate of cash amount withdrawn in a single day exceeds Rs 50,000, the tax is required to be deducted on the entire amount of cash withdrawn. Copyright Business Recorder, 2025
Business Recorder
10-05-2025
- Business
- Business Recorder
Tax law: NA body says govt has bypassed Parliament
ISLAMABAD: The National Assembly Standing Committee on Finance on Friday categorically conveyed to the Federal Board of Revenue (FBR) that the government has bypassed Parliament for promulgating Tax Laws (Amendment) Ordinance, 2025, and urgently communicated ordinance to the FBR's field formations for recovery from taxpayers. The National Assembly Standing Committee on Finance discussed the situation arising from the Promulgation of Ordinance No IV/2025 with particular reference to concerns of stakeholders and trade bodies. Chairman of the committee MNA Syed Naveed Qamar expressed serious concern that it is abuse of power to promulgate an ordinance for recovery from taxpayers without giving them right of appeal. FBR Chairman Rashid Mahmood responded that there is no abuse of power through promulgation of this ordinance. The ordinance has been cleared from the federal cabinet as well as the president of Pakistan. NA body adopts report on Tax Laws (Amendment) Bill: Restrictions on transactions of non-filers from July 1 The chairman of the committee directed the Law and Justice Division to immediately table the ordinance before the parliament for urgent action on this legislation. 'The government has urgency to promulgate the ordinance instead of making it part of the Finance Bill (2025-26). We have also same urgency to review the ordinance,' he added. The representative from the Ministry of Law and Justice informed the committee that the ordinance would be presented as a bill in the current National Assembly session, which would subsequently, be referred to the committee for consideration and report. The committee chairman questioned, what was the urgency to take these recovery measures through ordinance. The representative of the Law Division stated that there was an urgency but he failed to explain the urgency of the government. The committee deliberated on the urgency and rationale behind the ordinance while expressing concerns over its potential impact on various sectors across the country. Members emphasised that amendments to the law must be carefully evaluated to avoid unintended consequences on other categories. Naveed Qamar stated that the FBR has no answer to convince the committee about the urgency for promulgating this ordinance. 'We are waiting for the Ordinance to come to us in the form of a bill and we will question and securitise this ordinance,' Qamar said. The FBR chairman requested the committee that the ordinance is promulgated for a limited time period and the committee should give them 1-2 months to see the operations of the ordinance. The amendments in tax laws could have been passed through Finance Bill (2025-26), but you have shown urgency, the chairman committee responded. MNA Mirza Ikhtiar Baig stated that the Ordinance is totally contradictory to the FBR's commitment of business friendly environment. The trade bodies including Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly agitated against the said ordinance. The committee members also raised question about the repercussions of the Tax Laws (Amendment) Ordinance, 2025 on judiciary. At one stage, the FBR chairman stated that it is the prerogative of the legislator to reject this legislation. The FBR chairman explained that the FBR only wants to implement the orders of the High Courts. This ordinance introduces only three carefully scoped amendments, addressing urgent legal, administrative, and enforcement gaps in the tax system. Although the courts are now resolving cases promptly, a procedural lacuna in the law previously allowed taxpayers a 30-day delay in making payments on confirmed demands—even when the matter had been conclusively decided by the apex courts. As a result, billions in confirmed revenue remained unrealised despite clear court verdicts. The amendment through Sections 138(3A) and 140(6A) seeks to curtail this delay and allow for swift implementation of final judgments issued by the Supreme Court and High Courts, the FBR chairman added. 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
