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A meeting of the Standing Committee on Finance and Revenue was held today at the Parliament House, Islamabad, under the chairmanship of Syed Naveed Qamar, MNA. The session focused on the Finance Bill Proposals, the FBR Transformation Plan, and various tax measures.
The Committee expressed concern over the increased tax on profits and cash withdrawals. Chairman Syed Naveed Qamar directed the FBR to reduce the tax on profits for small depositors and to raise the tax-free cash withdrawal limit to PKR 75,000.
Members of the Committee also opposed the gradual withdrawal of the tax exemption extension for FATA/PATA, with Chairman Qamar calling it an “economic assassination” of small-scale businesses. The FBR was directed to reconsider this withdrawal and provide relief to the locals.
The Minister of State for Finance and Revenue and Chairman FBR presented an overview of the FBR’s ambitious transformation plan, set to be implemented from December 2025. This plan aims to address a significant tax gap of approximately PKR 7.1 trillion in FY 2024-25 and improve Pakistan’s tax-to-GDP ratio. The plan includes initiatives like Digital Production Tracking, Digital Invoicing, Digital Enforcement Stations, Cargo Tracking System, and Faceless Assessment System.
Committee members also raised issues with the Faceless Assessment System in Karachi, citing high charges, delays, and resulting demurrages. Complaints were also made regarding the misuse and errors in the Digital Production Tracking and Digital Invoicing Systems, particularly in distinguishing between old, used, and scrap material.
Chairman Qamar expressed concern that the digital enforcement station plan might congest port points and that the cargo tracking system could lead to practical issues. The Chair noted the maturing mortgage culture and urged the FBR to simplify the process for tax credits on housing loans for small residences. The FBR was asked to provide a specific table of options with thresholds for the Committee’s review.
The meeting also touched upon other budgetary positions, revenue receipts, income tax, sales tax measures, relief for salaried individuals, and super tax relief. Rationalization of advance tax rates for services to non-residents, allowance for coal miners in Sindh, dividend tax on mutual funds, and tax on e-commerce transactions. The meeting was attended by numerous MNAs, including the Hon. Minister of State for Finance and Revenue, the Secretary of Revenue Divisions, and other senior officers.
