The National Assembly Standing Committee rejected the proposal to impose income tax on the sale of food grains to farmers.
ISLAMABAD: The Standing Committee on Finance of the National Assembly has been informed that it has been decided to change the tax on the salaried class again and increase the income tax rate on the salary slab of Rs. 6 to 1.2 million per year to one percent. The committee approved the proposal to impose income tax on the profits of middlemen, while rejecting the proposal to impose income tax on the sale of food grains to farmers.
A meeting of the Standing Committee on Finance of the National Assembly was held under the chairmanship of Naveed Qamar, where it was decided to change the tax on the salaried class in the budget 26-2025.
In the meeting of the Standing Committee on Finance, it was decided to change the tax on the salaried class again in the budget 26-2025 and increase the income tax rate on the salary slab of Rs. 6 to 1.2 million per year to one percent.
In the new budget, the income tax rate on the annual salary slab of 6 to 12 lakh was fixed at 2.5 percent, which has now been decided to be reduced to one percent. The International Monetary Fund (IMF) had agreed to reduce the tax exemption to one percent for annual income up to 12 lakh rupees.
The committee was told that in the current financial year, 5 percent income tax is levied on annual income of 6 to 12 lakh rupees. The government had reduced the tax rate by increasing the relief for government employees from 6 percent to 10 percent.
The National Assembly committee has approved tax on those receiving pensions of more than one crore rupees annually. 5 percent income tax will be levied on income of more than one crore rupees, while no tax will be applicable on pensions up to one crore rupees annually.
Chairman of the committee Naveed Qamar said that those receiving monthly pensions of 8.5 lakh should contribute to the tax, to which the Chairman of the Federal Board of Revenue (FBR) said that pensions are also taxed in many countries of the world, including India.
Opposition Leader Omar Ayub Khan in the National Assembly said that then the FBR should also be run on the principles of the world. Some committee members including Omar Ayub expressed reservations about imposing tax on pensions.
Committee member Muhammad Javed said that tomorrow even a pension of one lakh rupees will be taxed. Except for judges, no one’s pension is more than one crore rupees.
According to FBR officials, clubs that charge a membership fee of one million rupees will come under the income tax net. The Minister of State for Finance said that these clubs are for the luxuries of the elite and their income should be taxed. In the next financial year, 52 percent income tax will be imposed on the profits of banks.
It was informed in the meeting that the restrictions on doing cash-to-cash business for registered businesses have been further tightened. Those doing business up to two lakh rupees in cash will be able to adjust 50 percent of the input.
The Finance Committee approved a provision to separate income from property from other businesses. Profits from property will not be adjusted in case of losses in other businesses. The limit for tax adjustment in case of losses for registered businesses has been limited.
The FBR will collect one percent tax on online sales and 5 percent tax on shops. Digital marketers will have to pay tax on turnover.
After a detailed discussion on the legal provision related to recovery from tax defaulters in the meeting, the chairman of the committee directed to further improve the law and resubmit it.
The committee rejected the proposal to set a 4 percent standard rent limit on commercial properties, but approved the proposal to impose income tax on the profits of middlemen, while the proposal to impose income tax on the sale of food grains to farmers was also rejected.
