• Proposal for falls for uniform rental of 4 pieces in commercial properties
• Exclusive clubs that charge RS1M or more members of membership brought under the fiscal network
• Arrest powers of fierce fiscal officials; mandatory approval and consultation
Islamabad: A parliamentary committee on Friday rejected a proposal to set a uniform rate for the assessment of commercial property rental, while supporting another measure to expand the fiscal network to high -end clubs throughout the country and reinforce safeguards against tax fraud.
The Finance Committee of the National Assembly resumed the deliberations in the Finance Law 2025 on Friday, as president of the Federal Income Board (FBR), Rashid Mahmood Langial, and his team went to consultations raised by the members of the Committee. The session was chaired by MNA Naveed Qamar, who provided information on several provisions of the bill.
On the issue of a uniform rental valuation rate of 4 percent in commercial properties, MNA Mirza Ikhtiar Baig urged the tax authority to reduce the proposed rate, a suggestion of the president of FBR counteracted by insisting that the rate could not be reduced.
Rashid said that, according to existing agreements, fiscal officers had discretionary power to determine rental assessments. “If the Committee is not willing to delegate the authority of the uniform rate, we are prepared to withdraw the proposal completely,” said the president of FBR.
MNA Usama Mela said that a 4 percent rate could be feasible in urban centers, but would raise challenges for rural areas.
The president of FBR replied that the system should be able to operate for a fiscal year and, if it is ineffective, adjustments could be made in the subsequent budget of the fiscal year. He stressed that FBB’s real estate assessments are significantly more precise than the vice -mouth of the vice -mashed commissioner rates (DC) and pointed out that the law allows space for new revisions.
MNA Naveed Qamar echoed the need for flexibility, which suggests that adjustments could be made where rates seem excessive. However, FBR officials announced the withdrawal of the proposed measure after the resistance of the committee members.
Elite clubs and electronic commerce
The president of FBR informed the NA committee that clubs that charge 1 million or more for membership, including the prestigious Islamabad club, will now be brought within the rental tax network. These clubs must submit detailed income and expenses, aligning with broader fiscal transparency objectives.
Rashid said the measure is aimed at exclusive membership facilities that have so far operated outside the formal fiscal supervision. “Only clubs that demand at least RS1M for new memberships will fall under this new compliance regime,” said the president.
Mna Muhammad Mobeen Arif also expressed concern about low taxes on electronic commerce, warning about potential misuse. He said that FBR will impose the 1 percent tax on online sales compared to 5 PC in merchants. The president of FBR clarified that a team is working to identify the disparity.
The Committee considered the amendments proposed to the Seal Law of 1899. After detailed deliberations, the Committee recommended that the amendments, as reviewed and proposed by the Committee, are approved by the Assembly.
The Committee considered the amendments proposed to the Registration Law of 1908. At the beginning, the Ministry expressed its intention to withdraw these amendments. Consequently, the Committee agreed to the application and allowed withdrawal.
The Committee examined the amendments proposed to the Income Tax Ordinance, 2001. After detailed deliberations, the Committee approved certain proposed amendments and suggested additional corrections and reviews to several clauses. Due to the shortage of time, the committee postponed the consideration of the remaining provisions of the bill to the next meeting.
The arrest powers of fiscal officials
The Minister of State for Finance, Bilal Azhar Kayani, declared on the floor of the National Assembly that arrests at the investigation stage in cases of sales taxes will no longer occur.
By acting on the directives of Prime Minister Shehbaz Sharif to address the concerns of the business community, the Government has modified the arrest clauses in sales tax laws based on recommendations of FAROOQ H. NAIK and the Permanent Committee.
He also said that key changes do not include arrests for sales tax fraud below 50 million. Mandatory approval of a three -member FBR Committee before any arrest, ensuring the protection of citizens. People accused of sales tax fraud will now be guaranteed the right to an audience. The discretionary arrest powers previously held by tax officials have been revoked, he clarified even more.
Previously, FBR issued a statement to eliminate its position on the legal provisions for the arrest of those involved in fiscal fraud, which have already been provided under section 37a of the 1990 sales tax law together with an elaborate procedure that will be followed after the arrest that implies the privacy of the special judge immediately and the production of said person before the special judge within 24 hours.
However, the proposed amendment is now restricted by the powers of the officer to arrest by making a previous investigation after the approval of the Internal Income Commissioner (CIR). Only based on the conclusions of the investigation, CIR will authorize the investigation, which would give the investigation officer the powers of an officer in charge of a police station under the Code of Criminal Procedure, 1898 (Law V of 1898). The arrest can only be made with the prior approval of CIR if the investigation officer has reasons to believe that a person may have committed tax fraud.
The new legal provision also establishes that if the arrest is bad faith, the matter will be sent to the Chief Commissioner for the investigation. This shows that, in contrast to the previous disposition, where a CIR assistant could arrest a criminal, the new provisions bring transparency in the process through a mandatory prior investigation and investigation and finally the CIR permission.
In addition, certain changes and amendments are also necessary to reassure taxpayers who comply with the State deals with those who evade taxes or involved in fiscal fraud with an iron hand.
Posted in Dawn, June 21, 2025
