ISLAMABAD: The Standing Committee on Finance and Revenue, chaired by Syed Naveed Qamar, convened at Parliament House to conduct a detailed review of the Finance Bill, 2026, with a primary focus on proposed tax exemptions and sector-specific concessions. Discussions centered on amendments related to sales tax, import regulations, and digital tax administration.

According to National Assembly of Pakistan, the committee examined a proposal to expand the Third Schedule of the Sales Tax Act, which would impose sales tax based on retail prices at the manufacturing stage for 21 new categories, including consumer goods such as packaged foods and cosmetics. Concerns were raised about potential price hikes and market distortions. The Federal Board of Revenue (FBR) was tasked with clarifying the expected impact on consumers.

The taxation of stationery items also sparked debate, with committee members advocating for educational supplies to remain tax-exempt to avoid financial strain on families. The FBR indicated that while some items would remain exempt, others might be taxed at a reduced rate of 10 percent, pending further analysis and revenue estimates.

A contentious proposal for a 15-year sales tax exemption for Pakistan International Airlines (PIA) under its privatization deal drew criticism for potentially distorting competition in the aviation sector. The committee recommended the government consider broader implications and possibly extend concessions across the sector to maintain competitiveness.

Other topics included maritime sector concessions and digital tax administration reforms. The committee expressed support for modernizing tax systems but called for strong oversight mechanisms to ensure transparency and taxpayer rights protection.

The committee’s next meeting is scheduled for 19 June 2026, where discussions on the Finance Bill will continue.