ISLAMABAD: The National Assembly Standing Committee on Finance on Friday rejected the proposal for a uniform 4% rental valuation tax rate on commercial properties.
The committee instead approved measures aimed at expanding the tax net to elite clubs charging Rs1 million or more for membership and strengthening safeguards against tax fraud.
Uniform Property Tax Proposal Withdrawn
The Federal Board of Revenue (FBR) chairman Rashid Mahmood Langrial faced strong opposition from committee members regarding the proposed uniform rental valuation rate.
MNA Mirza Ikhtiar Baig urged the FBR to lower the rate, but Langrial insisted it could not be reduced.
In response to resistance, the FBR offered to withdraw the proposal altogether, which was accepted by the committee.
Members expressed concerns that a flat 4% rate may be feasible in urban areas but would create difficulties in rural regions.
FBR emphasized that their valuation system was more accurate than the previous Deputy Commissioner rates and suggested the system could be reviewed after one fiscal year.
Crackdown on Elite Clubs and Tax Officials
The committee endorsed bringing exclusive clubs with membership fees of Rs1 million or more, including the Islamabad Club, under the income tax net.
These clubs will now have to file detailed income and expenditure reports, increasing fiscal transparency.
The move targets facilities that had previously operated outside formal tax oversight.
Additionally, amendments to arrest powers of tax officials in sales tax fraud cases were approved to curb misuse.
Under new rules, arrests will require prior inquiry and approval from senior FBR officials, protecting citizens’ rights.
The government aims to balance strict action against tax evaders with safeguards for compliant taxpayers.
This budget session marked significant discussions aimed at improving tax compliance and transparency while addressing concerns of fairness and enforcement.
