NA Delays Tax Bill, Seeks FBR, Export Reforms

Islamabad — The National Assembly’s Standing Committee on Finance and Revenue on Thursday, May 22, 2025, deferred discussions on the government-sponsored Income Tax (Second Amendment) Bill, 2025, citing the absence of the Federal Board of Revenue (FBR) chairman, deemed essential for progress. At the 13th meeting, FBR’s Member Inland Revenue Policy explained that Chairman Malik Amjed Zubair Tiwana was tied up with IMF and Prime Minister’s Office engagements, but Committee Chairman Syed Naveed Qamar fiercely rejected the excuse. “I just came from the IMF lunch—the FBR chairman and finance minister weren’t even there. Don’t give us excuses,” he snapped, halting all Revenue Division matters.

Qamar demanded the Revenue Division enhance and automate the tax refund system, emphasizing timely refunds for exporters and manufacturers, and flagging persistent complaints of double taxation and policy inconsistencies. The Karachi Chamber of Commerce and Industry (KCCI) presented budget proposals, voicing alarm over the shift of exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR) under the Finance Act 2024, urging a reversal to protect export sector competitiveness. KCCI also pushed for zero-rating on local supplies to cut input costs and boost industry, earning Qamar’s support for a taxpayer-friendly approach. “The FBR must eliminate malpractice, simplify procedures, and build a fair, transparent taxation framework to restore trust,” he declared, ordering direct consultations with KCCI.

The Committee reviewed the Parliamentary Budget Office Bill, 2025, introduced by MNA Rana Iradat Sharif Khan, forming a Sub-Committee for detailed scrutiny to establish an independent Parliamentary Budget Office (PBO) for expert, non-partisan fiscal oversight. Qamar hailed it as “long overdue,” promising improved accountability and policymaking. A pre-budget analysis from a senior economist was heard, but the oil refining industry’s sales tax reform presentation was deferred. The Committee approved prior session minutes, with members like Omar Ayub Khan (via Zoom), Dr Nafisa Shah, and others in attendance.

Web context underscores FBR’s tax collection struggles (e.g., Rs240 billion shortfall in FY24, web ID: 0), while posts found on X reflect anger over FBR absence and exporter woes, with some praising the PBO initiative. Critically, the narrative of “progress” may mask institutional inertia—web sources note persistent refund delays, and X sentiment suggests distrust in government accountability, hinting at deeper governance issues.