NA panel expands scope of non-filer purchases in tax bill – Business

ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue has expanded the scope of non-filers’ purchases, allowing them to buy rickshaws, motorcycles, tractors and cars up to 800cc.

The decision was part of the committee’s approval of a sub-committee report recommending revisions to The Tax Laws (Amendment) Bill, 2024, aimed at addressing stakeholder concerns and improving the tax framework.

At a meeting chaired by MNA Naveed Qamar, the committee reviewed sections of the tax amendment bill, agreeing to finalise the remaining provisions at its next session.

MNA Bilal Azhar Kayani, convener of the sub-committee on finance and revenue, presented the committee’s report, which was unanimously adopted.

Directs banks to report transactions exceeding income declared in tax returns

The committee approved the expansion of non-filers’ purchase eligibility to include tractors; mandatory reporting by banks of transactions exceeding an individual’s declared income in tax returns; greater clarity on the term “cash and equivalent assets” in Clause (5)(a) of the bill, as directed by Chairperson Naveed Qamar; and finalisation of the FBR’s updated online system and mobile app, with a demonstration to be presented within two months.

MNA Bilal Azhar said the successful adoption of the report marks a significant step towards refining and improving the tax framework, reflecting the collective efforts of policymakers, experts and key stakeholders in strengthening the country’s financial and economic landscape.

The committee deferred amendments to the Federal Excise Act 2005 for the next committee meeting.

The sub-committee recommended that the federal government determine the value threshold for transactions instead of the FBR to ensure that this restriction does not affect property transactions conducted by ordinary
citizens, especially lower and middle-income classes and first-time property buyers.

Moreover, the restriction clause comes into effect until the value is notified by the federal government. No person shall be considered ineligible for the purchases or selling unless a value is notified by the federal government.

The definition of an eligible person is also further defined, and the concept of immediate family members concerning an individual is changed to include his parents, spouse, and dependent children.

The committee was informed that the FBR will install points of sale at all Islamabad hotels and extend them to other service providers in the federal capital. Nadra, provincial excise and land departments will provide property purchase data to the FBR.

The committee approved the proposal to appoint new auditors and experts in the FBR. The new auditors hired in the FBR would be dismissed immediately if they leak taxpayer information, said FBR Chairman Rashid Mahmood Langrial. “Notices cannot be sent to everyone due to low capacity,” he said, adding that the amended tax law would help increase the tax net.

The FBR chairman also noted that banks would have an additional responsibility to report business and Association of Persons (AOP) transactions under the new measures.

MNA Dr Nafisa Shah feared that money was being sent out of the country due to the amended tax law of the FBR. She further said that this would adversely affect the economy.

The meeting was attended by MNAs Bilal Azhar Kayani, Rana Iradat Sharif Khan, Syed Samiul Hassan Gilani, Kesoo Mal Kheeal Das, Dr Mirza Ikhtiar Baig, Dr Nafisa Shah, Muhammad Jawed Hanif Khan, Arshad Abdullah Vohra, Omar Ayub Khan, Shahram Khan, Muhammad Mobeen Arif, Usman Mela, Muhammad Ali Sarfraz and Shahida Begum.

Minister of State for Finance Ali Pervaiz Malik, Secretary of Finance, FBR chairman, and senior officers from the finance ministry were also present.

Published in Dawn, February 12th, 2025