In a move aimed at overhauling Pakistan’s tax administration and improving the business climate, the National Assembly Standing Committee on Finance and Revenue has instructed the Federal Board of Revenue (FBR) to fully automate its tax refund system. The direction came during a recent session chaired by Syed Naveed Qamar, who emphasized the urgency of systemic reform to resolve long-standing grievances from taxpayers, particularly exporters and domestic manufacturers.
The committee highlighted the persistent delays in tax refunds that have become a significant challenge for businesses. Exporters and manufacturers often face prolonged waits for their tax refunds, which severely hampers their cash flows and overall operational efficiency. Qamar urged the FBR to adopt end-to-end automation to ensure refunds are processed promptly and transparently, thereby eliminating room for corruption, inefficiency, and discretionary decision-making.
One of the central issues raised was the problem of double taxation, which continues to plague individuals and businesses alike. The committee acknowledged that overlapping tax policies and inconsistent enforcement have created a cumbersome environment for compliance. Qamar criticized the policy loopholes that result in taxpayers being taxed multiple times on the same income streams and called for the establishment of a transparent, predictable, and business-friendly taxation framework.
The discussion also brought attention to the broader need for policy coherence within the Revenue Division. Qamar called for simplification of tax procedures, elimination of malpractices, and a comprehensive strategy to rebuild trust between the tax authority and the public. The committee stressed that restoring this trust is crucial for widening the tax base and enhancing voluntary compliance.
In parallel with the tax administration issues, the committee considered the Parliamentary Budget Office Bill, 2025. The proposed legislation aims to establish an independent Parliamentary Budget Office (PBO), a non-partisan institution that will assist lawmakers by providing expert analysis on fiscal policy, revenue forecasting, and government spending. The bill received unanimous support, and a subcommittee was formed to refine its provisions and finalize recommendations.
Qamar stated that the establishment of the PBO represents a significant step toward aligning Pakistan’s fiscal governance with international best practices. Once operational, the office will help ensure greater transparency and accountability in budgetary processes by equipping parliamentarians with objective economic data and policy analysis. This development is expected to significantly improve the quality of fiscal oversight and evidence-based policymaking in the country.
Meanwhile, the committee deferred further discussion on The Income Tax (Second Amendment) Bill, 2025, due to the absence of the FBR chairman. His participation was deemed essential for informed deliberation on key amendments that could impact revenue collection and taxpayer obligations.
During the session, the President of the Karachi Chamber of Commerce and Industry (KCCI) presented several budget proposals and expressed concerns over recent changes introduced in the Finance Act, 2024. In particular, he objected to the shift of exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR), citing negative implications for competitiveness and ease of doing business. He also called for the restoration of zero-rating on local supplies to provide much-needed relief to the industrial sector.
The committee took note of these concerns and committed to further examination of the issues in upcoming sessions, with the goal of crafting balanced policies that foster economic growth without compromising fiscal responsibility.