Islamabad: The Standing Committee on Finance and Revenue emphasized the need for systematic reforms in Pakistan’s tax system, highlighting issues like double taxation and policy inconsistencies. During its 13th meeting, chaired by Syed Naveed Qamar at the Parliament House, the committee also examined legislative proposals aimed at strengthening fiscal oversight.

During the session, the Committee considered “The Parliamentary Budget Office Bill, 2025,” introduced by Rana Iradat Sharif Khan. The bill seeks to establish an independent Parliamentary Budget Office (PBO) to bolster Parliament’s role in financial governance. The Committee supported the bill, noting its potential to enhance legislative scrutiny over fiscal policies and government expenditures.

Syed Naveed Qamar underscored the importance of the PBO, stating it would provide lawmakers with valuable analytical support and insights for informed decision-making. To further refine the bill, the Committee appointed a Sub-Committee to provide recommendations.

The Committee also addressed concerns from the Karachi Chamber of Commerce and Industry (KCCI) regarding the Finance Act, 2024. The KCCI President criticized the shift of exporters from the Final Tax Regime to the Normal Tax Regime, urging a policy reversal to support export-oriented businesses. He also advocated for restoring zero-rating on local supplies to bolster industrial growth.

In response, Chairman Qamar acknowledged the challenges identified by KCCI, stressing the need for the Federal Board of Revenue (FBR) to implement a taxpayer-friendly approach and eliminate malpractice. He directed the Revenue Division to automate the tax refund system for timely disbursement, particularly benefiting exporters and local manufacturers.

The Committee deferred consideration of “The Income Tax (Second Amendment) Bill, 2025” due to the absence of the FBR Chairman. Additionally, the Committee postponed discussions on tax reform proposals from the Oil Refining Industry.

With a focus on improving fiscal governance, the Standing Committee aims to address systemic issues and enhance the transparency of Pakistan’s taxation framework.