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Finance committee debates Tax Laws Amendment Bill 2025


Tax

FBR chairman informed that new tax categories will be announced today

ISLAMABAD: The Standing Committee on Finance of the National Assembly met today under the chairmanship of Naveed Qamar, to discuss the Tax Laws Amendment Bill, 2025.

The committee chairman said, “Everyone knows that half of our economy is in the black and gray area. Measures like this bill are needed so that money does not go out in the black [economy]”.

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Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial was also part of the meeting. He informed the committee that FBR collected the same amount of revenue in 2016 as it did in 2024. “We used to collect an additional two percent tax from those who did not declare their sources of income,” he added. He also admitted that corruption is still taking place within the FBR.

Jawed Hanif Khan said, “Before bringing the bill, all stakeholders should be consulted,” adding that the job of the FBR is to facilitate, and not impose strictness or restrictions. Parliamentarian and Minister of State for Finance Ali Pervaiz Malik replied that the industry was also consulted on the legislation.

He said, “Steps will have to be taken to stop the purchase of vehicles with black money. If they do not do this, the common people will have to wait to buy vehicles,” adding, “common people will not get vehicles despite paying in advance.

Speaking on the bill, the FBR Chairman said that categories of employees and officers have been created on the basis of performance. “Employees have been divided into A, B, C, and D categories,” he said, adding that the A category employees and officers will be paid four bonuses equal to their salary.

Langrial said that sales taxes and income taxes were increased by 1 per cent. “Taxes were also increased on the salaried class. But tax revenues did not increase in proportion to the growth rate and inflation,” he said.

He said that the economy is under pressure due to shortage of foreign exchange, adding that the new bill empowers the cabinet. FBR Chairman said that the bill will not come into effect immediately, it will happen over time and will be implemented gradually. “The cabinet will fully consider it and then a decision will be made,” he said.

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Committee Member Hina Rabbani Khar said, “No one should have the authority to close someone’s bank account. The machinery of the tax system needs to be fixed.” She said that there are problems in the machinery of the tax system due to which there is pressure. Ali Malik added that sales tax reduction can only come when direct tax is increased.

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