ISLAMABAD — The National Assembly’s Standing Committee on Finance and Revenue on Thursday deferred deliberations on the government-sponsored Income Tax (Second Amendment) Bill, 2025, citing the absence of the Federal Board of Revenue (FBR) chairman, whose presence was deemed crucial.
At the outset of the committee’s 13th meeting, FBR’s Member Inland Revenue Policy informed members that Chairman Malik Amjed Zubair Tiwana could not attend due to engagements with the IMF and the Prime Minister’s Office. However, Committee Chairman Syed Naveed Qamar sharply rebuked the explanation. “I just came from the IMF lunch — the FBR chairman and finance minister weren’t even there. Don’t give us excuses,” he said, refusing to proceed with any Revenue Division matters in the chairman’s absence.
Qamar also directed the Revenue Division to enhance and automate the tax refund system, stressing that timely refunds were critical for exporters and manufacturers, and noting continued complaints of double taxation and policy inconsistencies within the FBR.
The Karachi Chamber of Commerce and Industry (KCCI) also presented budget proposals to the committee, expressing concern over the shift of exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR) under the Finance Act 2024. KCCI leaders urged reversal of the move, warning that the new policy threatened the competitiveness and sustainability of Pakistan’s export sector.
Additionally, KCCI called for the restoration of zero-rating on local supplies, arguing that it would help reduce input costs and support industrial growth. The proposals received a sympathetic response, with Qamar acknowledging persistent grievances from the business community and calling for a taxpayer-friendly approach.
“The FBR must eliminate malpractice, simplify procedures, and establish a fair, transparent taxation framework to restore trust,” Qamar remarked, adding that the Revenue Division should hold direct consultations with the KCCI to address key issues.
The Committee also considered The Parliamentary Budget Office Bill, 2025, introduced by MNA Rana Iradat Sharif Khan, and decided to form a Sub-Committee for detailed review and recommendations. The bill aims to establish an independent Parliamentary Budget Office (PBO) to enhance legislative oversight of fiscal policy through expert, non-partisan analysis.
Qamar endorsed the initiative, noting that the PBO would improve fiscal accountability and policymaking by equipping lawmakers with robust analytical and economic tools. “This is long overdue. An independent PBO will empower Parliament to scrutinise budgets effectively and strengthen governance,” he said.
The committee also heard a pre-budget analysis from a senior economist, and decided to defer a scheduled presentation by the oil refining industry regarding sales tax reforms to its next meeting.
The committee approved the minutes of its previous two sessions. Members in attendance included Omar Ayub Khan (via Zoom), Rana Iradat Sharif Khan, Dr Nafisa Shah, Dr Mirza Ikhtiar Baig, Syed Sami ul Hassan Gilani, Sharmila Faruque, Muhammad Jawed Hanif Khan, Arshad Vohra, Usman Mela, and others.
