Islamabad
The Senate Standing Committee on Finance and Revenue,Chaired by Senator Saleem Mandviwalla, held its sixth consecutive session today at Parliament House.
The Committee rigorously discussed the “Income Tax” provisions of the Finance Bill 2025-26.
The Committee was briefed on the tax reductions provided to salaried class under various slabs. Chairman FBR stated that the tax on salaried class has been significantly reduced. The Committee was of view that the individuals earning monthly income of one lac should be exempted from the tax.
Discussing the newly introduced tax on e-commerce, the committee commented that the FBR should imposed tax on goods rather than services.
In the Finance Bill 2025-26, income tax has been introduced on recreational clubs which were previously exempted from tax. State Minister for Finance and Revenue,Bilal Azhar Kayani, stated that the recreational clubs are liable to pay tax, where their income exceeds the expenditure,and such steps have been taken to broaden the tax net of the country.
Federal Minister for Finance and Revenue also highlighted the newly introduced mortgage facility. He stated that mortgage will be available for houses up to 2,000 sq. feet, and the individuals will also be eligible for tax credit not exceeding 30pc of total income.
Commenting on the FBR’s new move of disallowing 10pc in case of purchases from non-registered suppliers ,the committee opined that such move will discourage competitive markets, as the number of registered suppliers is nominal across the country.
The Committee also expressed concerns over the newly inserted clause, which restricts the “Eligible Person” from making any purchase exceeding 130pc of wealth reflected in his/her last year’s statement. The Committee recommended that such threshold should be exceeded to 400pc of previous year’s statement.
The Committee concluded today’s session and will resume tomorrow at 11:00 am.
In attendance were Senators Syed Shibli Faraz,Mohsin Aziz,Fesal Vawda,Anusha Rahman Ahmad Khan,Muhammad Abdul Qadir,Ahmed Khan,Shahzaib Durrani,Federal Minister for Finance and Revenue Muhammad Aurangzeb,State Minister for Finance and Revenue Bilal Azhar Kayani,Chairman FBR Rashid Mahmood Langrial and other Senior Officials of relevant departments.
