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Business Recorder
01-05-2025
- Business
- Business Recorder
Respite only for salaried individuals as FY26 budget to be ‘tough' without GST relief: FBR chief
ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood, Wednesday, categorically said the upcoming federal budget (2025-26) would be tough with no sales tax concessions or reductions except relief to the salaried class. This was stated by FBR chairman during the meeting of the Standing Committee on Finance and Revenue held at the Parliament House, Islamabad, under the chairmanship of Syed Naveed Qamar, MNA/chairman. Through online from Karachi, Finance Minister Muhammad Aurangzeb has also confirmed that tax relief to the salaried individuals is under consideration in the next federal budget (2025-26). Rs265.745bn WHT paid in H1FY25: Salaried individuals emerge major contributor to kitty It is reliably learnt that the FBR has done working on major tax relief to the salaried class in the upcoming budget. Responding to the proposal of dairy sector to reduce sales tax from 18 to five percent, the FBR chairman informed the committee that the coming budget would be 'tough'. The analytical work on the proposal is underway but we are in the International Monetary Fund (IMF) programme. The sales tax reductions are not possible under the IMF programme. 'We are at a tough spot in terms of revenue collection. The economic assumptions including GDP growth, imports, inflation and growth in large-scale manufacturing, used for setting the tax collection target for 2024-25 have been changed', he said. The FBR chairman said that tax policy unit has been established at the Ministry of Finance, but this year's budget would be reviewed at the FBR till tax policy unit becomes fully functional. The chairman of the Finance Committee asked the FBR chairman to reduce sales tax on milk and compensate shortfall from some other sector. 'The FBR should convince the IMF that the reduction in sales tax on this essential item would be overcome through other measure', the chairman committee proposed. The committee also reviewed 'The Income Tax (Amendment) Bill, 2024' (government bill) and recommended that the National Assembly pass the bill as presented. The committee also considered, 'The Corporate Social Responsibility Bill, 2025,' a private member's bill introduced by Dr Nafisa Shah, MNA. The members appreciated the initiative and expressed unanimous support for the proposed legislation. To further examine the bill in detail and engage relevant stakeholders, the committee formed a Sub-Committee. The Sub-Committee will be convened by Mirza Ikhtiar Baig, MNA, with Rana Iradat Sharif Khan, Arshad Abdullah Vohra, and Muhammad Ali Sarfraz, MNA, as its members. The committee considered 'Non-implementation of Minimum Wages Announced by the Federal Government in its Departments' an issue raised by Syed Agha Rafiullah, MNA, and referred by the Speaker. Agha Rafiullah highlighted that not only is the private sector paying substandard wages, but several government departments are also failing to comply with the minimum wage policy. In response, the chairman directed the Additional Secretary Finance to ensure the implementation of the government-fixed minimum wage across all departments. He advised the mover to submit all the evidences to the finance secretary to facilitate necessary action. The committee deferred the matter for its next meeting. The committee discussed the 'Inquiry Regarding the Constitutional Validity and Potentially Maligning Provisions in Section 99D of the Income Tax Ordinance, 2001.' This matter was raised by Syed Hafeezuddin, MNA, and referred by the speaker. The president of Zarai Taraqiati Bank Limited (ZTBL) delivered a comprehensive briefing on the bank's overall performance and operational activities. The committee observed that the bank is prioritising profit-making rather than strengthening support for agriculturalists and farmers. The chair directed the president of bank to expand the loan base and make it more user-friendly. He recommended that the bank introduce a credit card with adequate credit limits for farmers and offer incentives for repayment through easy installments. The committee instructed the president to provide a province-wise breakdown of the bank's loan disbursements. The committee also expressed serious concern regarding the potential privatisation of bank. The committee, unanimously, approved the minutes of its previous meeting. The meeting was attended by Rana Iradat Sharif Khan, Zeb Jaffar, Muhammad Usman Awaisi, Kesoo Mall Khel Das, Dr Mirza Ikhtiar Baig, Dr Nafisa Shah, Ali Jan Mazari, Muhammad Jawed Hanif Khan, Arshad Abdullah Vohra, Muhammad Mobeen Arif, Usman Mela, Muhammad Ali Sarfraz, and Shahida Begum, MNAs. The meeting was also attended by Muhammad Aurangzeb, Minister for Finance and Revenue; chairman FBR and other senior officers from the ministry and its departments. Copyright Business Recorder, 2025
Business Recorder
01-05-2025
- Business
- Business Recorder
Respite only for salaried individuals: FY26 budget will be ‘tough' without GST relief: FBR chief
ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood, Wednesday, categorically said the upcoming federal budget (2025-26) would be tough with no sales tax concessions or reductions except relief to the salaried class. This was stated by FBR chairman during the meeting of the Standing Committee on Finance and Revenue held at the Parliament House, Islamabad, under the chairmanship of Syed Naveed Qamar, MNA/chairman. Through online from Karachi, Finance Minister Muhammad Aurangzeb has also confirmed that tax relief to the salaried individuals is under consideration in the next federal budget (2025-26). Rs265.745bn WHT paid in H1FY25: Salaried individuals emerge major contributor to kitty It is reliably learnt that the FBR has done working on major tax relief to the salaried class in the upcoming budget. Responding to the proposal of dairy sector to reduce sales tax from 18 to five percent, the FBR chairman informed the committee that the coming budget would be 'tough'. The analytical work on the proposal is underway but we are in the International Monetary Fund (IMF) programme. The sales tax reductions are not possible under the IMF programme. 'We are at a tough spot in terms of revenue collection. The economic assumptions including GDP growth, imports, inflation and growth in large-scale manufacturing, used for setting the tax collection target for 2024-25 have been changed', he said. The FBR chairman said that tax policy unit has been established at the Ministry of Finance, but this year's budget would be reviewed at the FBR till tax policy unit becomes fully functional. The chairman of the Finance Committee asked the FBR chairman to reduce sales tax on milk and compensate shortfall from some other sector. 'The FBR should convince the IMF that the reduction in sales tax on this essential item would be overcome through other measure', the chairman committee proposed. The committee also reviewed 'The Income Tax (Amendment) Bill, 2024' (government bill) and recommended that the National Assembly pass the bill as presented. The committee also considered, 'The Corporate Social Responsibility Bill, 2025,' a private member's bill introduced by Dr Nafisa Shah, MNA. The members appreciated the initiative and expressed unanimous support for the proposed legislation. To further examine the bill in detail and engage relevant stakeholders, the committee formed a Sub-Committee. The Sub-Committee will be convened by Mirza Ikhtiar Baig, MNA, with Rana Iradat Sharif Khan, Arshad Abdullah Vohra, and Muhammad Ali Sarfraz, MNA, as its members. The committee considered 'Non-implementation of Minimum Wages Announced by the Federal Government in its Departments' an issue raised by Syed Agha Rafiullah, MNA, and referred by the Speaker. Agha Rafiullah highlighted that not only is the private sector paying substandard wages, but several government departments are also failing to comply with the minimum wage policy. In response, the chairman directed the Additional Secretary Finance to ensure the implementation of the government-fixed minimum wage across all departments. He advised the mover to submit all the evidences to the finance secretary to facilitate necessary action. The committee deferred the matter for its next meeting. The committee discussed the 'Inquiry Regarding the Constitutional Validity and Potentially Maligning Provisions in Section 99D of the Income Tax Ordinance, 2001.' This matter was raised by Syed Hafeezuddin, MNA, and referred by the speaker. The president of Zarai Taraqiati Bank Limited (ZTBL) delivered a comprehensive briefing on the bank's overall performance and operational activities. The committee observed that the bank is prioritising profit-making rather than strengthening support for agriculturalists and farmers. The chair directed the president of bank to expand the loan base and make it more user-friendly. He recommended that the bank introduce a credit card with adequate credit limits for farmers and offer incentives for repayment through easy installments. The committee instructed the president to provide a province-wise breakdown of the bank's loan disbursements. The committee also expressed serious concern regarding the potential privatisation of bank. The committee, unanimously, approved the minutes of its previous meeting. The meeting was attended by Rana Iradat Sharif Khan, Zeb Jaffar, Muhammad Usman Awaisi, Kesoo Mall Khel Das, Dr Mirza Ikhtiar Baig, Dr Nafisa Shah, Ali Jan Mazari, Muhammad Jawed Hanif Khan, Arshad Abdullah Vohra, Muhammad Mobeen Arif, Usman Mela, Muhammad Ali Sarfraz, and Shahida Begum, MNAs. The meeting was also attended by Muhammad Aurangzeb, Minister for Finance and Revenue; chairman FBR and other senior officers from the ministry and its departments. Copyright Business Recorder, 2025
