ISLAMABAD: The Senate Standing Committee on Finance and Revenue has delayed finalising the Income Tax Amendment Bill 2025 and summoned the FBR chairman for the next meeting.

The understanding was reached during the committee meeting on Wednesday, chaired by Saleem Mandviwalla, at Parliament House. The session began with the presentation of the committee’s Annual Report covering the period from June 2024 to March 2025.

Members of the committee discussed the finalisation of the Private Member’s Bill titled “The Income Tax (Amendment) Bill 2025,” introduced by Senator Zeeshan Khanzada during the Senate sitting on Feb 17.

The discussion, however, focused on objections raised regarding the bill’s classification as a money bill, and members explored the possibility of incorporating changes without designating it as such.

Senator Anusha Rahman countered that the bill does not directly interfere with taxation. “If a proposal leads to improvement, we should consider it rather than block it,” she added.

To seek further clarity, the committee unanimously decided to summon FBR Chairman Rashid Langrial for the next meeting before finalising the bill.

Secretary Cabinet Division Kamran Ali Afzal briefed the committee on the government’s right-sizing initiative. He informed the committee that the prime minister had instructed a reduction in the size of the federal government to improve efficiency and prioritise core responsibilities and added that institutional reforms had also been initiated as part of this directive.

He also said that the premier had ordered a review of government-run commercial activities to assess their necessity and effectiveness.

The cabinet secretary clarified that the right-sizing process would not impact regulatory authorities. However, these bodies are asked to submit data on consultants, staff strength, and salary structures. The effects of right-sizing on autonomous institutions are also being examined.

Senator Sherry Rehman expressed concern over the government’s approach to reforms. “On one hand, the government talks about cutting costs, yet on the other, it has doubled the size of the federal cabinet,” she stated.

She also raised concerns that the right-sizing policy could cause significant hardship for government employees. “What will be the impact on those who are forced into early retirement?” she asked.

The meeting underscored the complexities of balancing fiscal discipline with administrative effectiveness and the challenges in executing large-scale structural reforms. The chairman of the committee and its members unanimously decided to review the matter thoroughly and department-wise and to discuss it further in the next meeting.

Published in Dawn, April 17th, 2025