NA panel slams 'brutal' tax law

A parliamentary committee on Friday expressed serious reservations over the recently promulgated the Tax Laws (Amendment) Ordinance, 2025, declaring it a brutal measure.

A meeting of the National Assembly's Standing Committee on Finance was held at the Parliament House under the chairmanship of Syed Naveed Qamar. During the meeting, members belonging to the PPP expressed reservations over the presidential decree.

Commenting on it, Qamar noted that the tax ordinance was issued just a day before the National Assembly session. "This is highly inappropriate. What was the emergency that required issuing a tax ordinance before the June budget?" he asked.

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial stated that while sales tax law allows production monitoring, this provision was absent in income tax.

He claimed that poultry companies were involved in tax evasion, noting that the cost of producing a chick is Rs65 to Rs75, while companies are making Rs100 profit per chick daily.

"A company had been paying Rs1.3 billion in annual tax but actually it owed Rs10 billion. After action was taken against the company, chicken prices began to decrease," he stated.

He said income tax returns of similar companies are fraudulent. "The presidential ordinance grants the FBR authority to monitor production and empowers it to recover taxes after orders from the Commissioner Appeals, Assessment Officer, and Tribunal,' he said.

The chairman revealed that tax evasion in the tobacco sector is estimated between Rs250 to Rs300 billion and that provincial police and administration will be given powers to catch tax evaders.

However, he admitted the ordinance will not yield substantial recovery, estimating only a 5% to 10% increase or about Rs30 billion in additional revenue. He said both the Federal Cabinet and the president had made an informed decision in issuing the ordinance.

Naveed Qamar warned that police officers may abandon their regular duties to pursue tax enforcement.