ISLAMABAD: The National Assembly’s Standing Committee on Finance on Saturday approved several key amendments to the Finance Bill 2025, including tax hikes for non-filers and expanded taxation of the e-commerce sector, in a bid to strengthen revenue collection and formalize Pakistan’s economy.
The committee, chaired by MNA Syed Naveed Qamar, conducted a clause-by-clause review of the proposed amendments and endorsed multiple measures focused on increasing tax compliance and broadening the tax base.
Among the key changes, the daily cash withdrawal limit for non-filers has been raised from Rs50,000 to Rs75,000, with the withholding tax rate increased from 0.6% to 0.8%. This move targets individuals operating outside the formal tax system.
For salaried individuals, relief has been granted through a cut in the income tax rate for those earning between Rs600,000 and Rs1.2 million annually — down from 2.5% to 1%. This is expected to benefit low- to middle-income earners.
The committee also approved a 0.5% reduction in the super tax on the corporate sector, providing slight relief to businesses under inflationary strain.
To address under-regulation in online commerce, a 2% withholding tax has been introduced on cash-on-delivery (COD) transactions, while taxes on e-commerce platforms were also approved to bring digital retailers into the formal tax net. However, a tax exemption will remain in place for online sellers with annual revenues below Rs5 million.
Additionally, tax exemptions for deposits in Special Convertible Rupee Accounts (SCRA) held for under six months have been removed.
In a significant compliance measure, the Federal Board of Revenue (FBR) has been granted authority to access data on individuals whose banking transactions exceed their declared income. FBR Chairman Rashid Mehmood Langrial told the committee that a computerised system will flag high-value current account activity, helping to identify potential tax evasion.
To further enhance enforcement, FBR will begin deploying staff to business premises for on-site surveillance.
However, the committee rejected a controversial proposal that would have penalised online marketplaces for facilitating sales to unregistered sellers — a move seen as potentially burdensome for digital platforms.
These measures come as the government seeks to tighten fiscal discipline and improve documentation of the informal economy in its 2025–26 budget.
