Islamabad, Feb 11: Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial assured on Tuesday that there will be no tax increase on vehicles up to 800cc. His remarks came during a session of the National Assembly’s Standing Committee on Finance and Revenue, where members reviewed the proposed Tax Laws (Amendment) Bill 2024. The discussion covered key issues, including vehicle taxation, digital invoicing, and measures to combat tax evasion.
During the session, FBR emphasized its push for businesses registered under the Point of Sale (POS) system to transition to digital invoicing. This move aims to enhance transparency by allowing real-time tracking of transactions, a measure expected to curb tax fraud and improve revenue collection. Additionally, the chairman announced that a sales tax will be introduced on services provided in Islamabad.
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Another significant point of debate was a proposal to impose restrictions on stock market investments. Some committee members expressed concerns that even students were making small investments, raising questions about regulatory oversight. In response, the chairman sought the committee’s recommendations on how to address the issue effectively.
To tackle tax evasion, FBR has reportedly developed an algorithm designed to identify discrepancies based on turnover. The chairman assured that while this system would be gradually rolled out, it would not lead to the halting of legitimate transactions.
He further disclosed that third-party auditors would be engaged to enhance revenue collection efforts. However, this proposal faced resistance from committee members, who opposed hiring external auditors. In response, the chairman explained that FBR struggles with recruiting permanent staff, making external hiring a necessary step.
The session concluded with discussions on stricter asset declaration requirements for property buyers, a move aimed at increasing tax compliance in the real estate sector. The role of government officials in enforcing tax laws also came under scrutiny, with an emphasis on ensuring accountability within the system. The committee’s deliberations underscored the ongoing challenges in Pakistan’s taxation framework, as authorities seek to balance revenue generation with fair regulatory policies.
