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Business Recorder
5 days ago
- Business
- Business Recorder
Higher business costs: MoF, SECP strongly object to amendments thru CSR Bill
ISLAMABAD: Ministry of Finance and Securities and Exchange Commission of Pakistan (SECP) strongly objected to amendments through 'The Corporate Social Responsibility Bill, 2025', arguing it will increase cost of doing business of companies in Pakistan. The 16th meeting of the Standing Committee on Finance and Revenue was held Wednesday at the Parliament House under the chairmanship of Syed Naveed Qamar, MNA. SECP Chairman Akif Saeed said that the amendments should not be proposed in the existing law. The present objective can be achieved through other alternate options. The law would create discrimination between the cost of doing business of association of persons (AOPs) and registered companies. Secretary Finance observed that we will come up with a solution where objective would be achieved without increasing cost of doing business of the companies. The committee considered 'The Parliamentary Budget Office Bill, 2025', moved by Rana Iradat Sharif Khan, MNA, and constituted a Sub-Committee under the Convenorship of Dr Nafisa Shah, MNA, for detailed deliberation on the bill and submission of its report within 30 days. Ali Zahid, Arshad Abdullah Vohra, and Muhammad Mobeen Arif, MNAs, will be the members of the newly appointed sub-committee. Dr Mirza Ikhtiar Baig, MNA, presented the report of the Sub-Committee on 'The Corporate Social Responsibility Bill, 2025', moved by Dr Nafisa Shah, MNA. The Committee adopted the report and deferred the discussion on the report for the next meeting of the Committee. The Committee expressed serious concern over the absence of the Secretary, Industries and Production, and deferred the agenda item relating to the new Electric Vehicle Policy. During the meeting, Secretary Finance and Chairman SECP Saeed said that there is no mandatory provision regarding the corporate social responsibility in the world except in India. Furthermore, it would result in increasing the doing of business cost and may discourage companies. The committee was further informed that many companies do not perform CSR. The committee members objected to their reservations while saying that one percent increase companies cost of doing business, but what about the 19 percent mandatory sale tax. On the taxation side, the government has no objection, but when we talk about welfare for the poor, there are serious objections. Nafisa Shah said that some companies are paying even 1.5 percent CSR. The Committee adopted the report and deferred the discussion on the report for the next meeting of the Committee. The meeting was attended by Rana Iradat Sharif Khan, Syed Samiul Hassan Gilani, Ali Zahid, Dr Nafisa Shah, Mirza Ikhtiar Baig, Muhammad Jawed Hanif Khan, Arshad Abdullah Vohra, Muhammad Mobeen Arif, Usama Ahmed Mela, MNAs. The meeting was also attended by Bilal Azhar Kayani, the Minister of State for Finance, Syed Rafiullah and Aliya Kamran, MNAs/movers of the starred questions. The secretaries and officers from the Finance and Revenue Divisions were also present during the meeting. Copyright Business Recorder, 2025
Business Recorder
23-05-2025
- Business
- Business Recorder
NA panel defers Income Tax (Second Amendment) Bill, 2025
ISLAMABAD: The Standing Committee on Finance on Thursday deferred 'The Income Tax (Second Amendment) Bill, 2025' — a government bill — due to the absence of the Chairman of the Federal Board of Revenue (FBR), whose presence was deemed essential for deliberations on the matter. 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
