NA panel defers Income Tax (Second Amendment) Bill, 2025
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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
PAF fleet arrives in UK for Royal International Air Tattoo 2025
Contingent of the Pakistan Air Force (PAF) comprising state-of-the-art JF-17 Thunder Block-III fighter aircraft and the C-130 Hercules transport aircraft landed at the Royal Air Force Base Fairford, United Kingdom, to participate in the prestigious Royal International Air Tattoo – 2025 (RIAT). In a press release today, the Inter-Services Public Relations (ISPR) said that PAF's participation in RIAT, one of the world's largest military airshows, underscores Pakistan Air Force's commitment to showcasing 'its professional excellence, operational capability and the indigenous strength of its aviation industry'. Adding to the operational significance of this international deployment, Pakistan Air Force's JF-17 Thunder Block-III fighters executed successful Air-to-Air Refuelling operations enroute to United Kingdom with the support of a PAF IL-78 aerial refuelling tanker. The ISPR said that the intricate refuelling operation demonstrated PAF's long-range operational capabilities and the proficiency of its air and ground crew in conducting extended operations beyond national borders. 'JF-17 Block-III is an EASA Radar and Long Range BVR equipped 4.5 generation multi-role fighter aircraft which is capable of undertaking wide variety of combat missions bolstering airpower application in the face of contemporary challenges thereby strengthening national security. There is a palpable sense of enthusiasm across the United Kingdom following the recent Pakistan India conflict, as aviation enthusiasts and defence observers were eagerly looking forward to the arrival of the Pakistan Air Force's JF-17 Thunder Block-III,' the statement said. The aircraft's combat-proven capabilities and operational excellence have garnered significant global attention, making its appearance at RIAT a highly anticipated highlight in the aerospace and defence community, added the military's media wing. In line with RIAT's annual tradition of themed artistic displays, PAF C-130 Hercules has been adorned with an exclusive livery inspired by this year's theme, 'Eyes in the Skies.' The participation of PAF's advanced fighter aircraft and artistically painted C-130 Hercules in RIAT-2025 'is aimed at fostering mutual understanding, sharing aviation experiences and enhancing PAF's image as a modern, technologically advanced air force contributing to global peace and security'.
Business Recorder
3 hours ago
- Business Recorder
Pakistan-IMF talks on tax-free sugar import underway
ISLAMABAD: Finance Secretary Imdadullah Bosal said on Wednesday that negotiations are underway between the government and the International Monetary Fund (IMF) on the issue of exemption of duties and taxes on the import of sugar. During the meeting of the National Assembly Standing Committee on Finance held on Wednesday, the Ministry of Finance secretary stated that one of the structural benchmark agreed between the fund and the government is not to grant tax exemptions/amnesty schemes. 'We are in consultation with the IMF regarding tax exemption on sugar,' he added. TCP cuts volume sought in sugar tender to 50,000MT The committee members also raised questions that whether additional revenue measures would be taken in case of tax exemption on sugar imports. The Federal Board of Revenue (FBR) has exempted Customs duty on the import of 500,000 metric tons of sugar and also reduced sales tax rate from 18 percent to 0.25 percent and withholding tax up to 0.25 percent on the import of commodity by the Trading Corporation of Pakistan (TCP) or the private sector. The FBR has also exempted three percent minimum value-added tax (VAT) on the import of sugar having quantity of 500,000 metric tons. FBR Chairman Rashid Mahmood Langrial informed the committee that the FBR has not moved any summary to the federal cabinet for exemption of duties and taxes on the import of sugar. The federal cabinet has taken the decision on a summary moved by the Ministry of National Food Security and Research (MNFSR). The FBR has issued the exemption notifications after receiving decision of the Federal Cabinet, Langrial stated. The FBR chairman stated that there are 54 percent taxes imposed on sugar including 20 percent import duty. There should not be such a high import tariff on the commodity. The prices of sugar at one time came down to Rs 130 per kg, he said. The Chairman of the Finance Committee, Naveed Qamar, was of the view that there is no shortage of sugar in the country. There are sufficient stocks of the commodity in the country. It is not clear what would be the rationale behind the import of sugar in the presence of ample stocks. The government should only be worried about the price of wheat which is de-regulated, but sugar is regulated in the country. Copyright Business Recorder, 2025
Express Tribune
7 hours ago
- Express Tribune
NA panel grills officials on sugar import
The National Assembly Standing Committee on Finance on Wednesday raised several questions regarding sugar imports and the provision of duty exemptions during its meeting chaired by Syed Naveed Qamar. The committee also took up various legislative agenda items, including the Parliamentary Budget Office Bill and a proposed tweak to Corporate Social Responsibility law. Members further questioned officials about a meeting between the government and the business representatives concerning certain budgetary measures. Addressing the issue of sugar imports, the chair asked for clarification from officials. Federal Board of Revenue (FBR) Chairman Rashid Langrial responded that the Ministry of National Food Security would be in a better position to answer. However, Qamar insisted that the FBR must have played a role. Langrial explained that the FBR had implemented the federal cabinet's decision to reduce the 18% sales tax and 20% customs duty on sugar imports. "Reducing taxes and duties on sugar lowers its price in the local market," he told the committee. However, the committee chair suggested that the government should withdraw from involvement in the sugar sector, because there was no shortage of the commodity in the country. Committee member Javed Hanif asked about the International Monetary Funds' (IMF} position on the sugar import. In response, Federal Finance Secretary Imdad Ullah Bosal said they were negotiating with the lender, adding that the government would have to implement the IMF's conditionalities. Later, the chair raised a query about the talks between the government and the businessmen on the issue of their protest. Minister of State for Finance Bilal Azhar Kayani replied that talks were held on Tuesday and a committee has been set up to find solution to the controversial issues within a month. Meanwhile, a report of the sub-committee on the corporate social responsibility law was presented in the meeting. While reviewing amendments to the law, the committee was told that the Securities and Exchange Commission of Pakistan (SECP) opposed the amendments. The SECP chairman informed the committee that these amendments would increase operational costs for companies. However, the chair noted that corporate social responsibility could not be left solely to the discretion of the private sector. The SECP chief said that the issue had come up only for oil and gas firms, but it was being applied to all companies. The finance secretary backed the SECP's contention, saying that "doing so would increase the companies' production cost". Committee Member Nafisa Shah pointed out that companies were already paying 18% sales tax and super tax, yet the Ministry of Finance appeared to object specifically to social sector spending. She added that while the law requires firms to allocate 1% of their profits to CSR, many were spending beyond that threshold. Minister of State Kayani suggested that the Finance Ministry and the SECP should bring their proposals after consulting with the companies. Committee Member Mirza Ikhtiar Baig said that all the chambers of commerce and industry and multinational companies were consulted on this law. The Finance Secretary requested the committee for some more time to consider the matter.
