NA Panel Orders FBR to Automate Refunds And End Double Taxation

The Chairman of the National Assembly Standing Committee on Finance and Revenue, Syed Naveed Qamar, directed the Federal Board of Revenue (FBR) to enhance and automate the tax refund system to ensure timely payments, especially for exporters and local manufacturers. The chairman took notice of serious concerns of double taxation and policy inconsistencies within the Revenue Division. He urged systemic reforms and called on the FBR to eliminate malpractice, simplify procedures, and develop a transparent and fair taxation framework to rebuild public and business trust. The committee also considered the Parliamentary Budget Office Bill, 2025. The bill seeks to establish an independent Parliamentary Budget Office (PBO) to strengthen legislative oversight on fiscal policy, revenue forecasting, and government spending. The committee expressed unanimous support and formed a subcommittee to further examine the bill’s provisions and provide recommendations. The bill was described as a step toward aligning Pakistan’s fiscal scrutiny practices with international standards. Qamar stated that the PBO would serve as a non-partisan resource to lawmakers, providing expert analysis and economic evaluations for evidence-based policymaking. The committee deferred discussion on The Income Tax (Second Amendment) Bill, 2025, due to the absence of the FBR chairman, whose input was deemed crucial. During the session, the President of the Karachi Chamber of Commerce and Industry (KCCI) presented budget proposals and voiced concerns over policy shifts in the Finance Act, 2024, particularly the move of exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR). He urged the committee to recommend reversing this change and restoring zero-rating on local supplies to support industrial competitiveness. In response, Qamar instructed the FBR to conduct a consultative visit to KCCI to directly address stakeholder concerns. He stressed that prompt tax refunds were essential for liquidity and economic growth. The committee also received a pre-budget analysis from a senior economist and decided to defer proposals from the oil refining industry on sales tax reforms to the next meeting. Minutes of the previous two meetings were unanimously approved.