Latest news with #TheIncomeTax(SecondAmendment)Bill
Business Recorder
3 days ago
- Business
- Business Recorder
Solar panels: Pakistan govt mulling withdrawing ST exemption
ISLAMABAD: Chairman Federal Board of Revenue (FBR) Rashid Mahmood said Thursday that the government is examining a proposal to withdraw sales tax exemption on solar panels in budget (2025-26). FBR Chairman was responding to a query of a member of the Senate Standing Committee on Finance during meeting held at the Parliament House. He stated that the FBR is working on proposals to withdraw all kinds of tax exemption including exemption available on the import of solar panels. Cabinet halts additional tax on solar power users Meanwhile, during another meeting of the National Assembly Standing Committee on Finance, the representatives of Refineries briefed the committee that their input was taxed, but on output, there was no GST, causing problems over the last several years. Without resolving this issue, they would not be able to invest $6 billion. The Chairman FBR, Rashid Mahmood Langrial, said that their business came out of the ambit of the Value Added Tax (VAT) when there was no tax on their output. He said that there were proposals under consideration to impose sales tax on their output or provide them some kind of other permanent solutions. Chairman FBR has also assured the committee that he will inquire into the matter of recovering over Rs 80 million amounts from KababJee restaurant Karachi. Member of committee Mirza Ikhtiar Baig raised the issue before the finance committee chaired by Nafeesa Shah. He informed that FBR has recovered more than Rs 80 million from accounts of this restaurant without giving any chance of hearing in different forums. He has no money to pay salaried and owner of the restaurant has threatened to commit suicide. The business community is pressing me for this harassment by the FBR, Baig added. The FBR Chairman replied that I did not have knowledge of this particular case. I will update the committee after inquiring about the matter from the relevant field office of FBR. The committee considered 'The Income Tax (Second Amendment) Bill, 2025'. The Committee expressed concern over the second proviso of the newly inserted clause (3A). The Secretary Revenue assured the Committee that the concerns of the Hon. Members would be addressed and that the words 'and shall cease to have effect after tax year 2025' would be deleted. Upon the assurance given by the Secretary Revenue, the Committee recommended that the Bill, as amended, may be passed by the Assembly. The Committee considered Starred Question No. 38, moved by Aliya Kamran, MNA, regarding the imposition of Section 99D of the Income Tax Ordinance, 2001, and Starred Question No. 40, moved by Sharmila Sahiba Faruqui Hashaam, MNA, regarding the recent policy shift prioritizing digital currencies, without adequately addressing their regulatory deficiencies. After a detailed discussion the Committee decided to defer both agenda items for discussion in the next meeting of the Committee. The report on the 'non-implementation of minimum wages, as announced by the Federal Government in its departments', a matter raised by Syed Rafiullah, MNA and referred by the Honourable Speaker, was also deferred due to the absence of the mover. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Solar panels: Govt mulling withdrawing ST exemption
ISLAMABAD: Chairman Federal Board of Revenue (FBR) Rashid Mahmood said Thursday that the government is examining a proposal to withdraw sales tax exemption on solar panels in budget (2025-26). FBR Chairman was responding to a query of a member of the Senate Standing Committee on Finance during meeting held at the Parliament House. He stated that the FBR is working on proposals to withdraw all kinds of tax exemption including exemption available on the import of solar panels. Cabinet halts additional tax on solar power users Meanwhile, during another meeting of the National Assembly Standing Committee on Finance, the representatives of Refineries briefed the committee that their input was taxed, but on output, there was no GST, causing problems over the last several years. Without resolving this issue, they would not be able to invest $6 billion. The Chairman FBR, Rashid Mahmood Langrial, said that their business came out of the ambit of the Value Added Tax (VAT) when there was no tax on their output. He said that there were proposals under consideration to impose sales tax on their output or provide them some kind of other permanent solutions. Chairman FBR has also assured the committee that he will inquire into the matter of recovering over Rs 80 million amounts from KababJee restaurant Karachi. Member of committee Mirza Ikhtiar Baig raised the issue before the finance committee chaired by Nafeesa Shah. He informed that FBR has recovered more than Rs 80 million from accounts of this restaurant without giving any chance of hearing in different forums. He has no money to pay salaried and owner of the restaurant has threatened to commit suicide. The business community is pressing me for this harassment by the FBR, Baig added. The FBR Chairman replied that I did not have knowledge of this particular case. I will update the committee after inquiring about the matter from the relevant field office of FBR. The committee considered 'The Income Tax (Second Amendment) Bill, 2025'. The Committee expressed concern over the second proviso of the newly inserted clause (3A). The Secretary Revenue assured the Committee that the concerns of the Hon. Members would be addressed and that the words 'and shall cease to have effect after tax year 2025' would be deleted. Upon the assurance given by the Secretary Revenue, the Committee recommended that the Bill, as amended, may be passed by the Assembly. The Committee considered Starred Question No. 38, moved by Aliya Kamran, MNA, regarding the imposition of Section 99D of the Income Tax Ordinance, 2001, and Starred Question No. 40, moved by Sharmila Sahiba Faruqui Hashaam, MNA, regarding the recent policy shift prioritizing digital currencies, without adequately addressing their regulatory deficiencies. After a detailed discussion the Committee decided to defer both agenda items for discussion in the next meeting of the Committee. The report on the 'non-implementation of minimum wages, as announced by the Federal Government in its departments', a matter raised by Syed Rafiullah, MNA and referred by the Honourable Speaker, was also deferred due to the absence of the mover. Copyright Business Recorder, 2025
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
