Members Raise Questions on Revenue Losses from Tax Concessions and Strategy for Expanding the Tax Net; FBR Directed to Submit Detailed Report

Islamabad (Izhar Khan Niazi): The National Assembly Standing Committee on Finance and Revenue has sought detailed information regarding the fiscal impact and potential revenue implications of the tax relief measures proposed in the Federal Budget 2026-27. Committee Chairman, Syed Naveed Qamar, expressed concern over the effect of tax concessions on the national exchequer and the government’s strategy for expanding the tax net.

During a meeting held at Parliament House, the Minister of State for Finance and senior officials of the Federal Board of Revenue (FBR) provided a comprehensive briefing on the tax measures, fiscal reforms, and revenue-enhancement proposals included in the budget.

The committee reviewed relief measures for the salaried class in the context of inflation, reductions in property taxes, incentives for the IT sector, and the potential impact of these initiatives on the economy, exports, and investment. Members expressed concerns that the proposed measures should not encourage speculative investment at the expense of genuine economic activity.

The committee also discussed concerns regarding taxpayers’ rights, transparency, legal compliance, and data protection under the proposed faceless audit system and artificial intelligence-based assessment mechanisms.

Chairman Syed Naveed Qamar emphasized that tax relief measures must be fair and economically justified, while stressing that expanding the tax base and improving enforcement of tax laws are essential. He directed the Ministry of Finance and the Federal Board of Revenue to present detailed estimates of revenue projections, fiscal impacts, and implementation plans before the committee undertakes further consideration of the Finance Bill 2026.

During the briefing, officials informed the committee that the budget package includes 11 relief measures, 10 fiscal reform initiatives, and 5 administrative reforms aimed at promoting economic growth, investment, exports, economic documentation, and enhanced tax collection.

The Standing Committee also approved the minutes of its previous meeting held on June 13, 2026. The session was attended by several Members of the National Assembly, along with senior officials from the Ministry of Finance and the Federal Board of Revenue.