Income tax bill sails through National Assembly

Minister clarifies BISP not disaster-response mechanism

ISLAMABAD:

The National Assembly on Thursday passed the Income Tax Ordinance (Third Amendment) Bill, 2025, aimed at strengthening the Alternative Dispute Resolution (ADR) mechanism for tax disputes.

Moved by Minister of State for Finance & Revenue and Railways Bilal Azhar Kayani, the legislation seeks to close gaps in the existing framework, particularly in the appointment of the ADR committee chairperson.

The measure is designed to ensure impartiality, enhance efficiency, and reduce the burden on courts, making ADR a credible and cost-effective option for taxpayers.

Under the new law, both taxpayers and the Federal Board of Revenue (FBR) will propose three names each for the chairmanship. If consensus fails, one nominee from each side will be forwarded to the law minister for final decision.

The chairperson must be a retired judge of high court, the Federal Constitutional Court or the Supreme Court with the relevant tax or commercial experience.

Kayani noted that previously the FBR held exclusive authority to appoint the chairman, raising concerns about impartiality. The revised process, he said, strengthens taxpayer protections, enhances the ADR framework, and ensures fair dispute resolution.

BISP

Minister for Poverty Alleviation and Social Safety Syed Imran Ahmad Shah informed the National Assembly that the total allocation for the Benazir Income Support Programme (BISP) stood at Rs716 billion, describing it as one of the world's leading finance-based social protection initiatives.

Responding to a question by Sharmila Faruqui during the question hour, the minister said BISP operated through three core components — the Kafalat cash assistance programme, the Nashonuma nutrition initiative and educational stipends under Taleemi Wazaif — and was widely recognised internationally for its transparency and scale.

He clarified that BISP was strictly an income-support programme and not a disaster-response mechanism.

The minister said the organisation did not independently conduct relief operations during floods, earthquakes or other calamities, adding that it only acted on formal policy directions issued by the government or the relevant authorities, including coordination with institutions such as the National Disaster Management Authority and Provincial Disaster Management Authorities when required.

The minister told the House that BISP functioned as an autonomous body with its own chairperson and governing board, and any proposal to expand its mandate or introduce new initiatives had to originate from the board.

Upon receipt of a formal request, he said, the ministry would move a summary to the federal government for consideration.

Replying to a supplementary question by Naima Kishwar Khan, Imran Ahmad Shah said BISP had established a comprehensive nationwide network comprising regional offices, facilitation centres, hospital desks and dynamic registration centres operating across all provinces down to the tehsil level.

He explained that beneficiaries were selected through the Proxy Means Test (PMT) system, with the poverty threshold currently set at a score of 32.

Households falling below this score were eligible for assistance, and qualifying families were presently receiving Rs 7,500 per quarter under the Kafalat programme.

The minister informed the House that more than 10 million beneficiaries were currently enrolled under BISP across the country, making it one of the largest social protection programmes in the region.

He urged members to attend parliamentary committee meetings to remain fully informed about verified data and programme performance.

Answering another question by Ahmed Saleem Siddiqui, the minister reiterated that BISP operated under clearly defined rules, standard operating procedures and governance mechanisms as an autonomous institution, with oversight exercised through its board.

He added that the programme's structure and operations were also aligned with commitments made with international partners, including the International Monetary Fund.

Concluding his remarks, the minister said the government remained committed to strengthening BISP as a sustainable, rules-based social safety net to ensure transparency, accountability and continued support for vulnerable households across the country.