Income Tax Ordinance (Third Amendment) Bill 2025: NA body directs ministry to revise key provisions

ISLAMABAD: National Assembly Standing Committee on Finance and Revenue Wednesday raised serious objections over the “The Income Tax Ordinance (Third Amendment) Bill, 2025” and directed Ministry of Law and Justice to revise key provisions of the said Bill.

The 20th meeting of the Standing Committee on Finance and Revenue was held today at the Parliament House, Islamabad, under the chairmanship of Hon. Syed Naveed Qamar, MNA/Chairman. The Standing Committee Underscores Robust Parliamentary Oversight as it Reviews Key Financial Legislation and IMF-Related Governance Commitments.

In a wide-ranging and impactful session, the Committee examined major legislative proposals and received a detailed briefing on Pakistan’s governance commitments under the IMF program. The meeting reflected Parliament’s firm resolve to exercise meaningful oversight on matters of public finance, transparency, and economic governance.

Tax law: NA body says govt has bypassed Parliament

Syed Naveed Qamar was unsatisfied with the response of FBR Member Legal on the “The Income Tax Ordinance (Third Amendment) Bill, 2025”.

The Committee considered “The Income Tax Ordinance (Third Amendment) Bill, 2025” (Government Bill). The Committee advised the Ministry to revisit the provision and develop two to three viable options that both strengthen impartiality and eliminate undue discretion.

Ministry officials agreed to review the process and return with revised proposals. With consensus achieved on the remainder of the Bill, the Committee decided to continue its consideration in the next meeting scheduled for 9 December 2025.

The Committee considered “The Income Tax Ordinance (Third Amendment) Bill, 2025” (Government Bill). The Committee advised the Ministry to revisit the provision and develop two to three viable options that both strengthen impartiality and eliminate undue discretion. Ministry officials agreed to review the process and return with revised proposals. With consensus achieved on the remainder of the Bill, the Committee decided to continue its consideration in the next meeting scheduled for 9 December 2025.

The Committee considered “The Netting of Financial Arrangements Bill, 2025” (Government Bill) and deferred for the next meeting. The Committee also deferred Briefing by the Chairman, Pakistan Telecommunication Authority (PTA) and Chairman FBR on taxation, valuation, limits, and formalities for overseas Pakistanis bringing new and used/refurbished mobile phones into Pakistan for the next meeting of the Committee.

The Committee conducted a detailed review and highlighted gaps between recommended reforms and existing practices. The Chair drew attention to the recommendation discouraging in-year budget adjustments without parliamentary approval.

The Committee strongly recommended that the Government move from an ex-post-facto approach to prior parliamentary approval, or at minimum, present such adjustments for approval on a quarterly basis, acknowledging that exceptional circumstances, such as wartime exigencies may necessitate limited flexibility.

On the Report’s emphasis on digitizing the economy, Committee observed that internet shutdowns could disrupt a fully cashless system and urged the Government to proceed cautiously.

The Committee stressed the need for a hybrid approach, ensuring continuity of economic activity during digital outages. The finance minister assured the Committee that the Government is mindful of this challenge and will maintain close coordination with Parliament as regulatory frameworks evolve.

The Committee considered “The Corporate Social Responsibility Bill, 2025”, moved by Hon. Dr. Nafisa Shah, MNA and directed the Ministry of Law to incorporate the agreed provisions in the existing Bill and present it before the Committee in the next meeting.

Copyright Business Recorder, 2025