Committee Approves Tax on High-End Clubs

Islamabad, June 21, 2025 — The National Assembly Standing Committee on Finance, chaired by MNA Naveed Qamar, has endorsed a bold government proposal to extend the tax net to high-end leisure clubs nationwide, including the prestigious Islamabad Club with membership fees over Rs1 million, as revealed in a news report during the Finance Bill 2025 review. FBR Chairman Rashid Mahmood Langrial defended the move, addressing committee inquiries, targeting exclusive clubs charging Rs1 million or more for new memberships, previously tax-exempt.

These clubs must now file detailed income and expenditure reports, aligning with transparency goals, and will be stripped of non-profit status, taxed like other high-income entities. Langrial confirmed the Islamabad Club’s inclusion, reflecting its growing exclusivity. The committee rejected a controversial proposal to indirectly tax farmers, respecting the federal domain limit on agricultural income.

This tax expansion aims to enhance compliance, but stakeholder reactions are pending. Web context highlights Pakistan’s narrow tax base (e.g., 0.8% of population, web ID: 0), while posts found on X show mixed views—some applaud fairness, others fear elite backlash. Critically, the narrative of “tax equity” may mask enforcement gaps—web data points to tax evasion trends, and X sentiment suggests distrust in effective implementation, hinting at potential resistance.