The National Assembly Standing Committee on Finance endorsed the government’s proposal to extend the tax net to high-end leisure clubs across the country, including the prestigious Islamabad Club, which charges a membership fee of over Rs1 million, according to a news report.
During a meeting to review the Finance Bill 2025, FBR Chairman Rashid Mahmood Langrial provided explanations regarding the proposal, responding to inquiries from the committee members. The session was chaired by MNA Naveed Qamar, who also offered feedback on various aspects of the bill.
The committee supported the move to impose income tax on the earnings of exclusive recreational clubs that charge membership fees of Rs1 million or more. These clubs, which have previously been exempt from income tax, will now be required to file detailed income and expenditure reports in line with broader transparency goals.
Langrial clarified that this change would apply only to clubs charging Rs1 million or more for new memberships. He emphasised that this amendment seeks to bring high-end clubs, which have operated outside formal tax oversight, into compliance with the tax system.
The FBR also informed the committee that the amendment would remove these clubs from the non-profit organisation category, ensuring that they are taxed like other entities with significant income. Langrial confirmed that the Islamabad Club, which has grown in exclusivity and membership fees over time, would be included in the tax regime.
The committee also reviewed and rejected a proposal to indirectly impose income tax on farmers, despite the federal government’s inability to tax agricultural income, which remains outside the federal domain.
