Finance Minister announces major tax and FBR policy updates

Finance Minister Muhammad Aurangzeb has announced big changes to Pakistan’s tax system and the rules of the Federal Board of Revenue (FBR). Speaking during the budget debate in the National Assembly, he shared several new policies aimed at improving the tax process and supporting businesses.

He said that the powers of the FBR are being checked, and now arrests in tax cases up to Rs50 million cannot be made without a court warrant. Also, a three-member FBR committee will decide on any arrest instead of a single officer.

The minister announced that people above 75 years of age will not have to pay tax anymore. However, a tax will now be charged on pensions that are over Rs10 million.

He added, “No withholding tax will be levied on personal residences for 15 years, and there will be a 20 percent tax on investment in government securities.”

To give relief to low-income earners, the finance minister said, “The tax on income between 600,000 and 1,200,000 will be reduced to 1%.” Also, e-commerce businesses will now follow a simple tax system with fewer taxes.

He also mentioned that Pakistan’s business environment is getting better and that a new industrial policy will be introduced soon to help industries grow.

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