No more relief for salaried class in current budget, finance minister tells NA panel

Ruling out any possibility of providing additional relief for the salaried class through further tax cuts or salary increases in the current budget, Finance Minister Muhammad Aurangzeb told the National Assembly Standing Committee on Finance and Revenue that the government could consider further relief in the next fiscal year, as the proposed Rs52 billion relief package had already used available fiscal space.

“We are not stopping here and can provide further relief in the next fiscal year,” the finance minister said during a briefing to the committee.

According to reports, the committee, chaired by Naveed Qamar, urged the government to provide more relief to salaried individuals, who, according to the discussion, contributed around Rs625 billion in taxes to the national exchequer.

The Federal Board of Revenue shared the estimated financial impact of the Finance Bill with the committee, but requested that the details remain confidential due to ongoing discussions with the International Monetary Fund.

The committee approved a proposal to withdraw advance tax on foreign television drama plays, although it was noted that the measure had been generating revenue.

The committee also approved a budget proposal to impose federal excise duty of Rs80 per litre on petroleum products, naphtha and white spirit to discourage the mixing of inferior petroleum products with more expensive petrol and high-speed diesel.

The measure is estimated to generate Rs23 billion, which would be shared with provinces.

The committee also approved a tax rate of 7% of the gross amount payable in cases involving transport services, freight forwarding services, air cargo services, courier services, manpower outsourcing services and hotel services.

Under the approved proposal, the tax rate will be 4% for information technology services and information technology-enabled services.

For independent professional services, including doctors, lawyers, architects, accountants, software engineers and developers working independently, the rate will be 15%.

The committee also approved an increase in tax deducted under Section 151A on gains from disposal of certain debt securities.

The rate will rise to 20% of the gross amount of capital gain from the existing 15%.

Members also questioned the continuation of the non-filer category. FBR officials said the category had been retained in light of parliamentary recommendations.

The committee endorsed framing a threshold for non-filers to enter the stock market.

A proposal to impose Special Excise Duty on imported luxury vehicles was also discussed.

FBR officials told the committee that a 40% Special Excise Duty would apply to imported luxury vehicles with engine capacities from 2,000cc to 3,000cc.

They said imported luxury vehicles with engine capacities above 3,000cc would be subject to a 41% Special Excise Duty.

The committee put the recommendations on imported vehicles on hold.

The committee said enforcement measures should remain fair, proportionate, transparent and consistent with the principles of natural justice, while ensuring that deliberate tax evasion is addressed through legal mechanisms.