Finance Minister Muhammad Aurangzeb announced a significant safeguard for taxpayers, stating that the Federal Board of Revenue (FBR)’s powers have been reviewed, and in cases involving up to Rs. 5 crore, arrests will not be possible without a judicial warrant. He made these remarks while concluding the budget debate in the National Assembly session today.
The Finance Minister reiterated the government’s commitment to easing the burden on various segments of society.
Key Budget Clarifications and Relief Measures:
Muhammad Aurangzeb provided several clarifications and announced relief measures during his address:
- Tax Exemptions for Seniors: Individuals above 75 years of age will remain exempt from tax.
- Pension Taxation: Pensions exceeding Rs. 1 crore (10 million) will be subject to tax.
- Withholding Tax on Personal Residence: There will be no withholding tax on personal residences for up to 15 years.
- Tax on Government Securities: Investments in government securities will be subject to a 20 percent tax.
- Salaried Class Relief: Acknowledging the tax burden on the salaried class, the Finance Minister announced the decision to reduce the tax rate for individuals earning between Rs. 600,000 and Rs. 1.2 million annually to one percent.
- E-commerce Taxation Simplified: Regarding the previously proposed tax on e-commerce, the Finance Minister stated that it has been shifted to a simpler system, and the tax imposed on e-commerce would be limited.
- Gratuity Exemption: Gratuity will not be subject to tax.
- Increased Access to Loans for Private Businesses: Private businesses will have greater access to loans.
Enhanced Safeguards Against Misuse of FBR Powers:
Minister Aurangzeb emphasized that the FBR’s powers have been thoroughly reviewed. Beyond the requirement for a judicial warrant in cases up to Rs. 5 crore, he stated that arrests will now be carried out by a three-member FBR committee, instead of a single officer, ensuring a more stringent approval process.
He affirmed the government’s focus on improving the business environment and announced that an industrial policy would be launched soon. The Finance Minister concluded by stating that the government has presented a balanced budget, reduced financial expenditures, and will only proceed with dam projects that have already been approved.
