AVN Report
ISLAMABAD: The legislation for taxing the agriculture sector will be finalized by January 2025, with tax collection to commence on July 1, 2025, announces Finance Minister Muhammad Aurangzeb.
Addressing the media after a meeting of the Senate Standing Committee on Finance at Parliament House, Mr Aurangzeb shared updates on ongoing negotiations with China regarding the re-profiling of energy sector debts.
He expressed optimism that a memorandum of understanding (MoU) would soon be signed to facilitate progress.
Additionally, the Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial says income tax returns have doubled to four million as compared to last year’s filing.
The chairman reaffirmed that no further extension will be granted for tax filings and warned of a crackdown on non-filers starting next month, based on extensive data collected.
He said prime minister has issued clear instructions for strict action against tax evasion.
The Senate Standing Committee, chaired by Senator Saleem H. Mandviwalla, also unanimously passed the Government Bill titled “The Banking Companies (Amendment) Bill, 2024,” that was referred to the committee on August 27, 2024.
The committee recommended that financial decisions made by the State Bank of Pakistan (SBP) should be subject to review by the finance minister, reflecting Parliament’s collective wisdom.
However, Mr Aurangzeb argued that such a provision could potentially weaken the central bank’s autonomy and governance.
Some committee members pointed out that parts of the SBP Act should be revisited to ensure its alignment with the bank’s independent status.
In response, the minister proposed a broader amendment package that would address these concerns, including removing restrictions on dual nationality for top SBP executives, with the exception of the governor.
The committee approved the bill, which also allows commercial banks to create subsidiaries for microfinance under their corporate social responsibility efforts and provides indemnity to SBP officials acting in good faith under the banking sector’s regulatory framework.
The committee also resolved a dispute involving a commercial bank’s illegal demand of Rs603 million under Islamic finance before the delivery of a vehicle.
The committee also received briefings from the Karakoram Initiative on the idea of a “National Tax Authority” and from the Asian Development Bank (ADB) on its projects in Pakistan. ADB’s recent contributions include $802 million for Covid-19 vaccines and recovery efforts following the 2022 floods.
