Finance Committee Demands Purpose-Driven and Balanced Tax Reforms

ISLAMABAD: (Web Desk) – The National Assembly Standing Committee on Finance and Revenue continued its detailed review of the Finance Bill 2026 during a meeting chaired by Syed Naveed Qamar at Parliament House in Islamabad.

The committee examined a range of fiscal proposals and received briefings from the Ministry of Commerce, the National Tariff Commission, the Federal Board of Revenue (FBR), the Petroleum Division, and the Islamabad Capital Territory administration on tariff reforms, vehicle token taxes, and amendments to petroleum levy regulations.

During discussions on the National Tariff Policy (2025–2030), members were informed that the proposed reforms aim to simplify Pakistan’s tariff structure, lower trade barriers, improve industrial competitiveness, and encourage exports. The reforms include reductions in customs duties and rationalization of various tariff categories, with an estimated revenue impact of Rs143.4 billion.

Chairman Naveed Qamar emphasized that tariff liberalization should be implemented gradually and responsibly to protect domestic industries while enhancing competitiveness. He stressed that tax measures must serve broader economic objectives rather than becoming purely revenue-extraction tools.

Committee members also voiced concerns over the potential impact of tariff reductions on local manufacturing, employment, and government revenues. They strongly opposed tariff concessions on environmentally harmful imports such as shredded tyres, arguing that such measures conflict with Pakistan’s environmental commitments and recycling objectives.

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The committee further reviewed a proposal to revise vehicle token taxes in Islamabad. Members expressed reservations about linking taxes to vehicle invoice values, particularly for middle-income vehicle owners, and called for detailed impact assessments before implementation.

The meeting also focused on amendments to the Petroleum Products (Petroleum Levy) Ordinance, 1961. Discussing levy recovery from Oil Marketing Companies (OMCs), Naveed Qamar stated that OMCs act solely as collection agents and should not be allowed to retain public funds.

The committee recommended stricter enforcement measures, including suspension of fuel supplies to companies that fail to deposit petroleum levies within 30 days. It also called for eliminating discretionary installment facilities that could weaken compliance and delay revenue collection.

The committee decided to continue its review of the Finance Bill 2026 during its next meeting.