The National Assembly’s Standing Committee on Finance approved several major amendments to the Finance Bill 2025 during a detailed session chaired by Syed Naveed Qamar on Saturday. These changes focus on increasing tax revenues and tightening financial regulation.
One of the key approvals includes raising the daily cash withdrawal threshold for non-filers from Rs50,000 to Rs75,000, while increasing the withholding tax rate from 0.6% to 0.8%. This is part of a broader strategy to bring more individuals into the formal tax system.
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To provide relief to salaried individuals, the committee reduced the income tax rate from 2.5% to 1% for those earning between Rs600,000 and Rs1.2 million per year, offering benefits to low- and middle-income earners. A 0.5% cut in super tax on corporate entities was also approved, aiming to ease the burden on businesses amidst rising inflation.
In another key decision, tax exemptions on Special Convertible Rupee Account (SCRA) deposits held for less than six months were eliminated. Additionally, a 2% withholding tax on cash-on-delivery (COD) transactions was introduced to enhance revenue from the booming e-commerce sector. The committee also gave a green signal to formalise taxation on e-commerce businesses.
To improve transparency and compliance, the committee approved a proposal allowing the Federal Board of Revenue (FBR) access to banking data for individuals whose transactions exceed their declared incomes. FBR Chairman Rashid Mehmood Langrial noted that a digital algorithm would flag unusually large transactions, particularly those processed through current accounts. Moreover, the FBR will deploy staff to commercial sites for real-time monitoring.
However, a contentious recommendation to penalize online platforms for transactions with unregistered customers was turned down. At the same time, the committee decided to maintain the tax exemption for online sellers generating up to Rs5 million annually, providing some relief to small-scale digital businesses.
