ISLAMABAD – The Senate Standing Committee on Finance has approved a proposal to increase the tax rate on property purchases by non-filers from 130% to 500%.
During the committee meeting chaired by Senator Saleem Mandviwalla, Senator Shibli Faraz argued that individuals earning between Rs600,000 to Rs1.2 million annually should be exempt from income tax, stating that a monthly salary of Rs100,000 now holds the real value of Rs42,000 due to inflation.
FBR Chairman Rashid Langrial informed the committee that tax will also be collected on the income of private clubs. However, Chairman Mandviwalla opposed this move. Langrial responded, saying that such clubs benefit only a select few, describing them as centers of luxury for around 300 individuals.
Minister of State for Finance Bilal Azhar Kayani stated that taxes will be imposed when income exceeds expenditures, highlighting that the issue mainly concerns the privileged class. Committee members ultimately supported the proposal to tax club income.
FBR officials further revealed that the upcoming budget proposes restrictions on property and vehicle purchases for non-filers, including a 130% tax rate on property purchases. Senator Mohsin Aziz suggested increasing this threshold, arguing that a non-filer with Rs10 million should be able to purchase property worth Rs50 million.
The committee approved raising the threshold from 130% to 500% for non-filers.
Finance Minister Muhammad Aurangzeb noted that penalties on non-filers were increased last year and emphasized ongoing efforts to bring them into the tax net.
Additionally, the committee approved a proposal to impose taxes on online educational institutions and academies. FBR Chairman Langrial stated that some online academies earn up to Rs20 million per month, adding that any teacher earning online must pay taxes.
