ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue has established a subcommittee to examine the proposed tax amendment bill with pertinent stakeholders and has supported the Federal Board of Revenue’s (FBR) initiatives to stop black money in real estate.
MNA Naveed Qamar presided over the committee meeting, which examined the Tax Laws (Amendment) Bill 2024 and established a subcommittee to address the disagreements between the FBR and the bill’s stakeholders.
According to the terms of reference, the subcommittee will make sure that the Association of Builders and Developers (ABAD) is consulted by the Revenue Division in order to ascertain the qualifying requirements and timeframe. The subcommittee, whose first meeting is set for Thursday, January 23, will identify all the elements that could affect the real estate market and will deliver its report within ten days.
The measure will enable FBR to improve tax compliance and bring the undocumented sector under the tax net, State Minister for Finance and Revenue Ali Pervaiz Malik told the committee. He claimed that for 75 years, the prior administration said nothing about non-filer issues. He asserted that “our government is committed to addressing this issue.”
creates a subcommittee to handle the complaints of stakeholders.
According to the state minister, the proposed rule would prevent non-filers from participating in businesses or the stock market, as well as from purchasing real estate and automobiles. Low-income individuals will, however, be exempt. The committee was told that black money powers half of Pakistan’s economy and that tax authorities have been given permission to employ 1,600 auditors to follow non-filers and enforce the tax laws on their financial affairs.
The committee was briefed by FBR Chairman Rashid Mahmood Langrial that the reforms are intended to target enterprises and high-income individuals who avoid taxes. According to him, non-filers can buy up to Rs. 10 million worth of real estate.
According to him, there is a significant underreporting of sales tax. There have only been 42,000 sales tax returns filed. The sales tax regime makes many enterprises hesitant to register.
Additionally, the new laws will give FBR officers more authority to stop transactions involving tax evasion and black money. He added that in order to improve revenue enforcement, the draft bill calls for hiring 1,600 auditors.
Concerns over certain suggested revisions were voiced by the committee. The members highlighted difficulties with the FBR’s capabilities and serious corruption. They also noted significant economic ramifications for the nation.
Mr. Qamar emphasized the need to improve filler registration in the network and raise overall revenue collection. He also gave the FBR chairman instructions to address the bill’s problems and offer remedies to lessen the bill’s negative economic effects on the nation.
He asked the finance department to eliminate irregularities and gain the trust of all parties involved.
