ISLAMABAD – Finance Minister Muhammad Aurangzeb said that as part of the new reforms of the Federal Board of Revenue (FBR), no individual would be arrested in the cases involving tax liabilities up to Rs. 50 million without a court-issued warrant
Finance Minister Aurangzeb while concluding the federal budget debate in the National Assembly announced major changes to the Federal Board of Revenue’s authority and introduced several tax relief measures aimed at easing the burden on the salaried class and improving the overall business environment.
Muhammad Aurangzeb said that the powers of the FBR have been revisited to ensure fair implementation of tax laws. The arrests, he said, would now require the approval of a three-member FBR committee rather than being left to the discretion of a single officer.
Highlighting the government’s sensitivity to the concerns of salaried individuals, the finance minister announced that annual income between Rs. 600,000 and Rs. 1.2 million will now be taxed at a reduced rate of one percent. He clarified that gratuity payments would remain tax-free and added that e-commerce businesses would be transitioned to a simplified tax system, minimizing their overall tax burden.
The minister further explained that the citizens aged 75 and above would remain exempt from income tax. However, the pensions exceeding Rs. 10 million annually would now be subject to taxation. Withholding tax would not apply to properties held for self-residence for up to 15 years, and returns from investments in government securities will be taxed at 20 percent.
Muhammad Aurangzeb also emphasized the government’s commitment to fostering a pro-business environment. He stated that a new industrial policy will be launched soon to boost growth and attract investment.
He described the budget as balanced and fiscally responsible, noting that the government has taken steps to reduce unnecessary spending.
He confirmed that funding will only be allocated to dam projects that have already received formal approval.
The finance minister also expressed hope that the reforms would help broaden the tax base, protect the interests of honest taxpayers, and create a more transparent and equitable tax system.
Pakistan cuts Income Tax from 5% to 1% for Salaried Class earning up to Rs12lac a year
