The Senate has approved 128 recommendations proposed by the Standing Committee on Finance for the new Finance Bill, forwarding them to the National Assembly for further consideration.
Among the key recommendations is a mandate that transactions exceeding Rs 35,000 must be conducted via credit or debit card. Additionally, a uniform sales tax on the import and manufacturing of solar panels has been suggested.
The Senate also advised the withdrawal of sales tax on eight stationary items, the mandatory publication of prices on all market-sold items, and the imposition of a tax on agricultural income. They called for the identification of organizations claiming tax exemptions under the guise of charitable activities.
The Federal Board of Revenue (FBR) has been urged to recruit 5,000 new employees based on merit, offer a 100% additional allowance to disabled employees, withdraw the 5% additional tax on corporate debit card transactions, and eliminate double taxation on IT companies.
Further recommendations include removing the additional tax on mobile phones, retracting the proposed sales tax on poultry feed, and imposing a 1% tax on rental income instead of the value of overseas property. The Senate also proposed increasing the annual credit card limit from $30,000 to $50,000.
To alleviate the tax burden on salaried individuals, the Senate suggested introducing a scheme for affordable petrol for motorcycle users, withdrawing the proposed 10% GST on newsprint, and exempting charitable hospitals from sales tax on medical equipment and medicines.
Special programs for the youth of Balochistan, tax exemptions on local supply in FATA and PATA until June 2025, and the restoration of the 2019 tax regime for the construction sector were also recommended. The Senate proposed abolishing the tax imposed on the construction sector.
The upper house endorsed a one-window operation for investments by overseas Pakistanis, the repeal of the law allowing the blocking of company accounts without notice, and the withdrawal of a proposal to increase sales tax by Rs 1,300 billion. They also recommended reducing direct taxes by 50% and increasing indirect taxes.
The Senate has decided to set the minimum monthly wage for laborers at 45,000 rupees. Additionally, the Senate recommended not imposing customs duty on cars up to 660 cc, similar to electric vehicles. Instead of allocating Rs 2 billion to Danish schools, the Senate suggested improving the schools in Islamabad. Furthermore, it recommended reviewing the contracts with Independent Power Producers (IPPs) and halting their payments.
