NA finance panel flags concerns over income tax amendment bill, seeks revisions from Law Ministry

The National Assembly Standing Committee on Finance and Revenue, chaired by Syed Naveed Qamar, on Wednesday objected to key clauses in the Income Tax Ordinance (Third Amendment) Bill, 2025 and directed the Ministry of Law and Justice to revise the proposed changes before the legislation moves forward. 

The committee reviewed the bill during its 20th meeting at Parliament House and examined broader governance commitments linked to the IMF programme.

Qamar expressed dissatisfaction with the Federal Board of Revenue’s briefing on the bill and asked the Ministry of Law to return with alternative options that reduce discretion and ensure impartiality in the tax regime. 

Ministry officials agreed to re-examine the provisions and present revised proposals. With agreement on the rest of the draft, the committee decided to continue its review in its next sitting on December 9.

The panel also considered the Netting of Financial Arrangements Bill, 2025 but deferred a decision. Briefings from the Pakistan Telecommunication Authority and the Federal Board of Revenue on procedures for overseas Pakistanis bringing mobile phones into the country were postponed to the next meeting as well.

Committee members reviewed gaps between governance reforms recommended under the IMF programme and current government practice, particularly the frequent use of in-year budget adjustments without prior parliamentary approval. 

The committee urged the government to shift toward ex-ante approval for all such changes or, at minimum, place adjustments before Parliament on a quarterly basis. It noted that only exceptional circumstances, such as wartime needs, should justify deviations.

On the IMF recommendation to advance economic digitisation, members warned that internet shutdowns could disrupt a fully cashless economy and advised the government to adopt a hybrid approach to maintain continuity during outages. Finance Minister Muhammad Aurangzeb assured the committee that regulatory changes would be implemented in consultation with Parliament.

The committee also reviewed the Corporate Social Responsibility Bill, 2025, moved by Dr Nafisa Shah, and asked the Ministry of Law to incorporate agreed amendments and present an updated version at the next meeting.