Islamabad:
The Senate Standing Committee for Funding reviewed Finance Bill 2025 on Wednesday and recommended a zero -classified tax on income of up to RS1.2 million and rejected a proposal to impose people who perform small online companies.
During a meeting, led by its chairman Saleem Mandviwala, the committee approved the proposal to impose the tax from online academies and teachers, but opposed the tax for the Islamabad club’s income.
The Federal Board of Revenue (FBR) officials informed the meeting that teachers provided online digital education services and earned the RS20-30 million. They added that a new clause had been introduced in the financial bill to introduce tax on those who do e-commerce business using online marketplaces.
All persons providing services over the Internet and electronic networks will be affected, FBR officials said. They added that the tax also applies to music, audio and video streaming platforms, cloud services, online software application providers, telemedicine and e-learning services.
The tax will also be imposed on online banking services, architectural design services, research and consultancy reports, accounting services and other online facilities in the form of digital files, FBR officials say. The committee rejected a proposal to tax people who performed small online businesses.
The FBR chairman said that with an annual income of 1.2 million they have to pay RS12,500 in taxes.
Committee Member Senator Shibli Faraz said there should be no tax on income of RS600,000 for RS1.2 million.
FBR chairman Rashid Langrial told the committee that it had been decided to collect taxes from entertainment clubs, including the Islamabad Club. However, the chairman of the committee opposed the move.
Langrial said the ordinary man did not benefit from this club as it was luxury for 300 people.
The FBR officials said there was a proposal to impose restrictions on the purchase of property and vehicles from non-file. They added that a limit of 130% of the income was set for the purchase of property of the non-files.
Senator Mohsin Aziz said the 130% limit for buying non-file property should be increased. The committee recommended to increase the limit to 500%.
Finance Minister Muhammad Aurangzeb said steps were taken to bring non-filers into the tax network.
