ISLAMABAD: The Senate Stan­ding Committee on Finance and Revenue has approved the Income Tax (Second Amendment) Bill 2025 and sought a report from the Federal Board of Revenue (FBR) on tax deduction from teacher salaries.

The committee meeting, chaired by Senator Saleem Mandviwalla, focused on the withdrawal of tax exemptions for salaried individuals, particularly teachers, whose salaries faced significant deductions.

Mandviwalla directed the Federal Board of Revenue (FBR) to submit a detailed report identifying affected teachers and the status of their refunds, emphasising that failure to return deducted amounts undermines the law’s intent.

FBR Chairman Rashid Mahmood Langrial assured compliance and supported the committee’s recommendations.

Mohsin Aziz suggested ex­­pediting the refund or adjustment process.

The committee also reviewed budgetary allocations and utilisation under the Public Sector Development Programme (PSDP) for FY25. While the Planning Commission raised concerns over lapsed project budgets, Finance Ministry officials clarified that no funds had lapsed and that over 50 percent of the authorized funds had already been disbursed.

Mandviwalla requested written figures and recommended summoning the finance ministry and relevant departments to ensure transparency.

In discussions on the proposed barter trade mechanism between Pakistan and Iran, he inquired about the absence of a formal net-off settlement mechanism. He urged the relevant departments to develop a clear procedure.

The committee emphasised the need to relax existing restrictions and expand the list of tradable items.

Senator Mandviwalla asked stakeholders to submit proposals for new items and directed authorities to resolve operational issues such as limited customs hours and storage space at NLC terminals in Quetta. He also recommended forming a local committee in Quetta to address traders’ concerns on the ground.

Published in Dawn, May 30th, 2025