Islamabad, June 18, 2025: The Senate Standing Committee on Finance on Wednesday suggested zero percent income tax for individuals earning up to Rs. 1.2 million annually. Senator Shibli Faraz emphasized that no income tax should be charged on yearly earnings ranging between Rs. 600,000 and Rs. 1.2 million.
He highlighted that someone receiving a monthly salary of Rs. 100,000 effectively ends up with only Rs. 42,000 after all deductions.
The panel also reviewed the proposal to impose taxes on the earnings of elite clubs. Chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, noted that revenues from such clubs would be taxable, adding that these establishments do not serve the broader population and primarily cater to nearly 300 affluent members. Interestingly, Committee Chair Senator Saleem Mandviwala voiced opposition to this tax measure.
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Minister of State for Finance Bilal Azhar Kayani justified the planned levy, stating it would only be enforced if the club’s revenue surpasses its expenses, and that the matter relates to the wealthier segment of society. A majority of the committee members expressed their approval for taxing income generated by elite clubs.
