ISLAMABAD – June 27, 2025:
The National Assembly has approved the Finance Bill 2025, introducing several important changes to tax laws, enforcement procedures, and digital economy regulations.
FBR and Lawmakers Disagree on Changes
Officials from the Federal Board of Revenue (FBR) claim that 98% of the original bill remains unchanged. However, lawmakers, including MNA Naveed Qamar, say the final bill reflects the full input of the finance committee, which made several amendments.
Despite the disagreement, both sides agree that the bill includes new procedural safeguards, especially to limit the discretionary powers of tax officers.
Major Changes in Finance Bill 2025
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Tax Officer Powers Limited
Before suspending bank accounts of unregistered persons, FBR officers must now issue three notices. Suspensions can only happen in short intervals and with due warning. -
New Transaction Restrictions for Non-Filers
Individuals who don’t file taxes will be barred from:-
Buying property over Rs50 million (residential) or Rs100 million (commercial)
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Withdrawing over Rs100 million in cash annually
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Opening investment accounts over Rs50 million
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Arrest Powers Regulated
In tax fraud cases over Rs50 million, the FBR must seek approval from a three-member committee before any arrest. Suspects must be presented before a magistrate within 24 hours. -
Digital Economy Compliance Tightened
Online marketplaces, payment apps, and courier services must submit monthly statements. Failure to do so will lead to:-
Rs300,000 fine for first offence
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Rs1 million fine for repeated offences
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Solar Tax Reduced
Sales tax on imported solar panels reduced from 18% to 10%, giving Rs8 billion relief. -
Carbon Levy Renamed
The Carbon Levy is now called the Climate Support Levy, still charged at Rs2.50 per litre on fuel products. -
Lawmakers’ Perks Updated
A new clause allows MPs to decide their own perks and aligns minister salaries with those of parliamentarians. -
Cargo Tracking Introduced
A new electronic system will track all cargo to prevent smuggling under changes to the Customs Act 1969.
What’s Next?
The approved Finance Bill 2025 will now be sent to the President of Pakistan for final assent. Once signed, it will become law and take effect from July 1, 2025.
