A gathering of the Standing Committee on Finance and Income was held at this time on the Parliament Home, Islamabad, below the chairmanship of Syed Naveed Qamar, MNA. The session centered on the Finance Invoice Proposals, the FBR Transformation Plan, and varied tax measures.
The Committee expressed concern over the elevated tax on earnings and money withdrawals. Chairman Syed Naveed Qamar directed the FBR to cut back the tax on earnings for small depositors and to boost the tax-free money withdrawal restrict to PKR 75,000.
Members of the Committee additionally opposed the gradual withdrawal of the tax exemption extension for FATA/PATA, with Chairman Qamar calling it an “financial assassination” of small-scale companies. The FBR was directed to rethink this withdrawal and supply reduction to the locals.
The Minister of State for Finance and Income and Chairman FBR introduced an outline of the FBR’s bold transformation plan, set to be carried out from December 2025. This plan goals to handle a big tax hole of roughly PKR 7.1 trillion in FY 2024-25 and enhance Pakistan’s tax-to-GDP ratio. The plan consists of initiatives like Digital Manufacturing Monitoring, Digital Invoicing, Digital Enforcement Stations, Cargo Monitoring System, and Faceless Evaluation System.
Committee members additionally raised points with the Faceless Evaluation System in Karachi, citing excessive prices, delays, and ensuing demurrages. Complaints have been additionally made concerning the misuse and errors within the Digital Manufacturing Monitoring and Digital Invoicing Methods, significantly in distinguishing between previous, used, and scrap materials.
Chairman Qamar expressed concern that the digital enforcement station plan may congest port factors and that the cargo monitoring system may result in sensible points. The Chair famous the maturing mortgage tradition and urged the FBR to simplify the method for tax credit on housing loans for small residences. The FBR was requested to offer a selected desk of choices with thresholds for the Committee’s assessment.
The assembly additionally touched upon different budgetary positions, income receipts, revenue tax, gross sales tax measures, reduction for salaried people, and tremendous tax reduction. Rationalization of advance tax charges for companies to non-residents, allowance for coal miners in Sindh, dividend tax on mutual funds, and tax on e-commerce transactions. The assembly was attended by quite a few MNAs, together with the Hon. Minister of State for Finance and Income, the Secretary of Income Divisions, and different senior officers.