IMF rejects tax rebate for teachers, researchers: FBR
The FBR chairman informed the committee that the FBR has twice approached the fund, but they have not agreed. The IMF wants harmonisation of taxes and not allowed the said tax rebate to teachers/researchers. However, the government can give subsidy from budget if possible.
MNA Nafeesa Shah stated that the government can give some kind of special allowance to teachers.
Budget FY26: Aurangzeb announces major tax relief for salaried class, solar sector
State Minister of Finance Bilal Azhar Kayani regretted that there is no fiscal space available in 2025-26.
The National Assembly Standing Committee on Finance approved the revised procedure of arrest in cases of tax fraud as approved by Senate Standing Committee on Finance.
The FBR chairman informed the committee that the FBR has its own jails to keep persons involved in tax fraud and it can also use other jails for this purpose. The government has incorporated four major safeguards for allowing arrests on tax frauds in order to avoid misuse of powers. In the first pre-requisite, the minister said that the accused of tax fraud would be arrested where there was a fear of his escape, but it would be done with the approval of three members of the Board, including FBR Member IR (Operations) and FBR Member Legal.
The tampering of proof could be the second reason, and the third reason could be tax fraud amounting to Rs50 million. The fourth condition of the arrest, he said, would only be possible if someone received three notices but not bothered to respond.
The FBR chairman informed that the relevant clause of income tax exemption to pensioners has been deleted from the Income Tax Ordinance to tax only pensions above Rs10 million.
The committee recommended that the withholding tax should be increased from 0.6 per cent to 0.8 per cent on cash withdrawals from banks by non-filers. However, the committee rejected the proposal of Senate Standing Committee on Finance to raise tax rate from 0.6 per cent to 1 percent.
On the taxation of salaried individuals, the FBR chairman informed that only one per cent tax would be applicable on salaried individuals where taxable income exceeds Rs600,000 but does not exceed Rs1,200,000.
Copyright Business Recorder, 2025
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