ISLAMABAD: The National Assembly Standing Committee on Finance, chaired by MNA Naveed Qamar, has approved a series of sweeping tax measures under the Finance Bill 2025, aimed at expanding the tax base, tightening compliance, and addressing demands from the International Monetary Fund (IMF).
The new proposals target non-filers, online businesses, mutual fund investors, and digital advertising platforms, signaling a broad crackdown on tax evasion and under-reporting in both traditional and digital sectors.
Key Measures Approved
Tighter Rules for Non-Filers and Cash Transactions
- A 1% tax will now apply on daily bank withdrawals exceeding Rs75,000 by non-filers.
- Withholding tax on such withdrawals is being raised to 0.8%.
- A 5% withholding tax will be levied on cash-on-delivery (COD) and e-commerce transactions, with courier companies designated as withholding agents.
- Courier services will be required to submit monthly compliance statements, with penalties of Rs50,000 for three months of non-compliance.
Online Businesses and Sales Monitoring
- All online businesses must now register with the Federal Board of Revenue (FBR).
- E-commerce operations with turnover below Rs5 million annually are not exempt.
- Even sales tax-exempt manufacturing units will now be brought under FBR monitoring.
- Monthly income and sales statements will be mandatory for registered entities.
Enhanced Investigative Powers for FBR
- The FBR has been granted authority to track transactions linked to CNICs, particularly those involving multiple bank accounts per business.
- In case of discrepancies, the FBR can investigate the family tree of the filer to uncover hidden assets or income.
- Banks will be required to report transactions that exceed declared incomes to the State Bank of Pakistan and other data platforms.
Changes to Investment and Ad Revenue Taxation
- Mutual fund profit tax has been increased to 25%.
- A 15% tax has been introduced on digital advertising revenues, affecting platforms earning from online ads.
- Interest earnings on loans will now be taxed at 20%.
- Investors in T-bills and Pakistan Investment Bonds must now hold these instruments for at least six months to qualify for tax exemption; otherwise, they will be subject to taxation.
Roshan Digital Accounts Remain Tax-Free
Officials from the State Bank of Pakistan confirmed that Roshan Digital Accounts will continue to enjoy exemption from taxes on deposits and withdrawals, in a move to preserve confidence among overseas Pakistanis and foreign investors.
These reforms are seen as a crucial part of Pakistan’s fiscal roadmap to meet IMF targets, enhance documentation, and reduce reliance on borrowing through broadening the tax net.
