Finance Bill (2026): NA body cautious govt against amendments without scrutiny

ISLAMABAD: National Assembly Standing Committee on Finance Sunday cautioned government against introducing legislative amendments without adequate technical examination and parliamentary scrutiny under Finance Bill (2026).

The committee seriously observed that last-minute changes could compromise legislative quality, create legal ambiguities, and lead to implementation challenges.

Chairman Syed Naveed Qamar emphasised that a balanced and sector-neutral framework would not only enhance competition but also contribute to a stronger, more resilient, and efficient aviation industry.

He was chairing meeting of the Standing Committee on Finance and Revenue, which concluded its intensive series of meetings held to undertake a comprehensive clause-by-clause examination of the Finance Bill, 2026. Following extensive deliberations, the Committee approved a number of significant legislative refinements aimed at strengthening transparency, protecting taxpayers’ rights, improving accountability, and enhancing the effective implementation of tax laws.

Members stressed that all proposed amendments should undergo comprehensive review to uphold the principles of sound legislation, transparency, and effective parliamentary oversight.

The Committee also held an in-depth discussion on the proposed taxation mechanism for the steel sector. Government representatives informed

Members that the prescribed electricity consumption benchmarks—700 units per metric ton for steel melting and 110 units per metric ton for steel re-rolling—are explicitly prescribed in law and linked to data published by the Pakistan Bureau of Statistics (PBS), thereby eliminating administrative discretion.

During the proceedings, Chairman Hon. Syed Naveed Qamar underscored the importance of legislative precision over expediency. He said “In the balance between speed and accuracy, I will always prefer accuracy. The Committee must not rush through legislation at the cost of precision and sound law-making.”

Among the key amendments approved was a strengthened legal safeguard providing that no freezing order against property held by a third party may be issued unless the Special Judge records written reasons and affords the affected person an opportunity of being heard, except in circumstances where immediate action is necessary to prevent the dissipation of assets.

Chairman Syed Naveed Qamar, MNA, stressed that fiscal policy should remain equitable, transparent, and free from any perception of preferential treatment. He observed that government support should be guided by objective policy considerations and applied uniformly across the sector, stating that public policy must avoid creating the impression of one-sided favouritism. The Chairman emphasized that a balanced and sector-neutral framework would not only enhance competition but also contribute to a stronger, more resilient, and efficient aviation industry.

T1he Committee also held an in-depth discussion on the proposed taxation mechanism for the steel sector. Government representatives informed

Throughout the deliberations, Members expressed several important observations and concerns regarding the proposed fiscal measures. The Committee emphasized that taxation mechanisms should remain firmly anchored in law, operate with complete transparency, and avoid excessive administrative discretion. Members sought detailed clarification regarding the proposed electricity consumption benchmarks and taxpayer compliance ratios to ensure that the methodology is scientifically determined, objective, and consistently applicable.

Over the course of its meetings, the Committee received comprehensive briefings from the Federal Board of Revenue (FBR), the Ministry of Finance, the National Tariff Commission (NTC), Ministry of Industries, Ministry of Commerce, and other relevant stakeholders on a broad range of fiscal and taxation proposals. These included measures relating to income tax, sales tax, customs, federal excise, tariff reforms, petroleum levy, digital taxation, banking data sharing, tax administration, compliance mechanisms, and sector-specific fiscal incentives. Members thoroughly examined each proposal, carefully assessing its economic implications, implementation feasibility, impact on taxpayers’ rights, transparency, and the potential consequences for consumers, businesses, exporters, and Pakistan’s overall investment climate.

Chairman Syed Naveed Qamar consistently emphasized that fiscal policy must strike a careful balance between revenue generation and sustainable economic growth. He reiterated that broadening the tax base should take precedence over increasing the burden on existing taxpayers, while safeguarding taxpayer privacy, ensuring transparency in enforcement mechanisms, and promoting a predictable, equitable, and business-friendly tax regime. He further stressed that tax reforms should strengthen industrial competitiveness, protect vulnerable segments of society, and contribute to long-term economic development.

Following detailed deliberations, the Committee made a number of recommendations to further strengthen the proposed legislation. These included the phased implementation of major tax reforms, enhanced institutional oversight and accountability, stronger safeguards for consumer interests, improvements in administrative efficiency, and the development of robust implementation mechanisms to ensure that fiscal measures remain practical, equitable, and capable of achieving their intended policy objectives.

Concluding its examination of the Finance Bill, 2026, the Standing Committee reaffirmed its unwavering commitment to ensuring that the legislation reflects the principles of fairness, transparency, fiscal responsibility, and good governance. The Committee emphasized that a well-considered and balanced Finance Bill is essential to safeguarding taxpayers’ rights, strengthening public confidence in the tax system, promoting sustainable economic growth, and advancing Pakistan’s long-term economic stability.

Sharmila Faruqui and Mr. Muhammad Javed Hanif, MNA submitted notes of dissent on EV policy and existing taxation structure on imported mobile Phones respectively.

The meeting was attended by Rana Iradat Sharif Khan, Ali Zahid, Syed Sami-ul- Hassan Gillani, Bilal Farooq Tarar, Muhammad Usman Awaisi, Dr Nafisa Shah, Hina Rabbani Khar, Dr. Sharmila Faruqui, Dr Mirza Ikhtiar Baig, Muhammad Javed Hanif Khan, Arshad Abdullah Vohra, and Shahida Begum, MNAs. The meeting was also attended by the Hon. Minister of State for Finance, the Secretary Finance, the Secretary Commerce, Additional Secretary Industries, the Director General (Tax Policy Office), Members of the Federal Board of Revenue, and senior officials from the Finance Division, the FBR, and other relevant ministries and Divisions.

Copyright Business Recorder, 2026