ISLAMABAD, Dec 24 (EPI):\u00a0 Federal Minister for Finance and Revenue Muhammad Auranzeb on Tuesday has outlined the government\u2019s commitment to rebuilding the public trust on Tax authorities through the introduction of the \u201cPeople Process Technology\u201d initiative.<\/p>\n
The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, convened today to deliberate on The Tax Laws (Amendment) Bill, 2024. The bill aims to strengthen the tax collection system and ensure fair taxation based on individuals\u2019 income, according to Senator Muhammad Aurangzeb, Minister for Finance and Revenue.<\/p>\n
A key point of discussion was raised by Senator Syed Shibli Faraz, Leader of the Opposition, who questioned whether the bill should be classified as a \u201cMoney Bill\u201d or an ordinary bill.<\/p>\n
In response, Secretary for Law and Justice, Raja Naeem Akbar, clarified that the bill should be treated as a Money Bill, citing Article 73(2) and Article 75 of the Constitution of Pakistan as the legal basis.<\/p>\n
Senator Syed Shibli Faraz emphasized the urgent need to restore public confidence in tax authorities, asserting that no substantial progress could be made without public trust. In response, the Federal Minister for Finance and Revenue outlined the government\u2019s commitment to rebuilding this trust through the introduction of the \u201cPeople Process Technology\u201d initiative.<\/p>\n
He reiterated the government\u2019s empathy towards the salaried class and stressed that efforts were underway to create a fair balance between different socioeconomic classes.<\/p>\n
The committee extensively deliberated on various aspects of the bill, which includes amendments to Sales Tax Act, ICT (Tax on Services), Income Tax, and Federal Excise Duty. Chairman Federal Board of Revenue (FBR), Rashid Langrial, revealed that out of 62,000 registered entities, only 42,000 are actively paying sales tax.<\/p>\n
He highlighted that failure to pay sales tax is more unethical compared to income tax evasion, and that the proposed amendments seek to improve sales tax collection mechanisms.<\/p>\n
Senator Syed Shibli Faraz also inquired about the potential impact of the amendments on broadening the tax base. The FBR Chairman responded by predicting that the tax-to-GDP ratio could rise to approximately 13% over the next four to five years, driven by increased revenues from sales tax, income tax, and customs duties.<\/p>\n
While the committee held its deliberations on the sales tax clauses of the bill, discussions on income tax, ICT (Tax on Services) and Federal Excise Duty were deferred to the next meeting.<\/p>\n
The meeting was attended by Senators Syed Shibli Faraz, Mohsin Aziz, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, State Minister for Finance and Revenue Ali Parvez Malik, Chairman FBR Rashid Langrial, Secretary for Law and Justice Raja Naeem Akbar, and senior officials from relevant departments.<\/p>\n
Ends-Exact Press International-<\/p>\n","protected":false},"excerpt":{"rendered":"