ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue directed the Federal Board of Revenue (FBR) on Thursday to automate and expedite the processing of tax refunds, particularly for exp­orters and local manufacturers, to ensure timely disbursements and support industrial activity.

The directive came during a meeting chaired by MNA Naveed Qamar, who also appointed a subcommittee to review the Parli­a­mentary Office Bill 2025 and present recommendations. The stan­ding committee noted persistent issues within the FBR, including double taxation and inconsistent policy implementation.

MNA Rana Iradat Sharif Khan introduced the bill and provided a comprehensive briefing on the objectives and rationale behind the proposed legislation. The bill aims to establish a well-structu­r­­ed and independent Parlia­m­en­tary Budget Office (PBO) to enh­ance the role of parliament in fi­­nancial oversight and governance.

The committee expressed unanimous support for the bill, acknowledging the importance of institutionalising expert and non-partisan analysis of budgetary matters.

Highlights issues like double taxation, inconsistent policy implementation

Mr Naveed highlighted that the proposed PBO, drawing from international best practices, would significantly strengthen legislative scrutiny over fiscal policy, government expenditures, revenue forecasts and overall fiscal sustainability.

He added that the PBO’s establishment would serve as a critical resource for lawmakers, enabling informed decision-making by providing robust analytical support, economic evaluations and evidence-based insights.

Following a detailed discussion, the committee decided to appoint a subcommittee to further examine the bill’s provisions and provide recommendations.

The committee decided to defer consideration of “The Income Tax (Second Amendment) Bill, 2025” — a government bill — due to the absence of the FBR Chairman Rashid Mahmood Langrial, whose presence was deemed essential for deliberations.

During the meeting, Karachi Chamber of Commerce and Industry (KCCI) President Jawed Bilwani presented a series of proposals for the upcoming national budget. He expressed serious concerns regarding the Finance Act, 2024, particularly the policy shift that moved exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR).

Mr Bilwani urged the committee to recommend reversing this policy shift and reinstating the Final Tax Regime for export-oriented businesses to ensure their continued viability and competitiveness.

Mr Naveed took note of issues raised by the KCCI and observed persistent challenges such as double taxation and policy inconsistencies within the Revenue Division. He emphasised the urgent need for systemic reforms within the FBR and called upon the institution to adopt a taxpayer-friendly approach.

The chairman strongly advised the FBR to eliminate malpractice, simplify procedures and develop a fair and transparent taxation framework to restore the confidence of both the business community and the general public in the country’s revenue administration.

Published in Dawn, May 23rd, 2025