The Senate Standing Committee on Finance has approved a proposal to impose standard sales tax on more than 3,400 commonly used items, including packaged food, children’s formula milk, sweets, cooking oil, branded shoes, and clothing.
The Finance Committee cleared the key provisions of the new Finance Bill during its review session, though the meeting was briefly suspended after the federal finance minister and the minister of state failed to arrive on time for the proceedings.
Committee Chairman Saleem Mandviwala halted the session over the absence of government ministers, prompting them to rush to the meeting immediately once proceedings were formally paused by the committee chair.
The committee approved imposing standard sales tax on 3,400 everyday consumer items, granting the Federal Board of Revenue authority to conduct re-audits under specific conditions, and introducing a National Faceless Tax System across Pakistan.
The Federal Board of Revenue is expected to generate Rs60 billion in additional annual revenue as a direct result of these newly approved taxation measures affecting thousands of consumer products.
The committee also approved a tax exemption proposal for Pakistan International Airlines covering the import of aircraft, spare parts, leased equipment, catering supplies, and fuel trucks used in airline operations.
The committee further amended this exemption to extend the same tax relief benefits to all airlines operating within Pakistan, rather than limiting the concession exclusively to Pakistan International Airlines.
Additionally, the committee approved the import of bulletproof vehicles and granted tax exemptions on these vehicles specifically for use during the upcoming Shanghai Cooperation Organisation Summit in Pakistan.
A conditional approval was granted for tax relief on specialised vehicles intended to counter terrorism threats, with the Ministry of Interior assigned the responsibility of determining the exact number of vehicles required.
