ISLAMABAD: National Assembly Standing Committee on Finance and Revenue Friday granted approval for bringing over Rs 10million pension into the tax net at a rate of 5 percent.
Taking part in discussion, MNA Muhammad Jawed Hanif Khan stated that it seems that this move would bring all pensionable amounts into the tax net in the future. He was of the view that there might be a limited number of people, and probably Judges of the higher courts would come into the tax net.
The NA Panel also discussed the FBR’s proposal for the deduction of the tax amount after the decision of the High Court. The Parliamentarians belonging to PPP and PTI opposed this proposal and argued that it was an infringement of the right of appeal of the taxpayer, as the FBR should not withdraw the money from the account of the taxpayer soon after getting a favourable decision from the High Court.
Chairman FBR, Rashid Mahmood Langrial, made all-out efforts to convince the members of the NA Panel and stated that the tax amount was proven at three to four forums, and after proving the case in favour of the FBR the tax amount was secured from the taxpayers. The Parliamentarians were of the view that the due tax amount should only be drawn after exhausting all forums, including the Supreme Court of Pakistan.
The Chairman of the Committee instructed the FBR to come up with a second thought and revised draft on the piece of legislation in the finance Bill; otherwise, in the existing shape, the committee would reject such powers from the FBR.
The NA Panel also approved amendments proposed in the Income Tax in the Seventh Schedule, which provides special treatment for the banking sector. The FBR has proposed five amendments for disallowing banks from incorporating expenses from the payment of taxes, including the rented building of banks and advances to Non-Performing Loans (NPLs).
Copyright Business Recorder, 2025
