Bills concerning income tax, waste disposal tax, and imports approved by the National Assembly.
Breaking News: National Assembly Passes Nine Bills Inclusion The Income Tax Amendment Bill 2024
Pakistan's National Assembly has approved nine bills, including the highly-contested Income Tax Amendment Bill 2024 and the Anti-Dumping Duties Amendment Bill 2025. On a different note, the civil servants of BS-17 and above will now be required to disclose their domestic and foreign assets, followed by their spouse and dependent children.
The elected representatives passed the "Civil Servants (Amendment) Bill, 2025," which stipulates that these declarations of assets must be digitally filed with the Federal Board of Revenue and will be publicly available through their platform, subject to prescribed rules.
Two bills were private members' bills, including "The Trade Organizations (Second Amendment) Bill, 2025" by Syed Ali Qasim Gillani of PPP and "The Islamabad Capital Territory Child Marriage Restraint Bill, 2024" by Sharmila Faruqui of PPP. Notably, the opposition, particularly the Pakistan Tehreek-e-Insaf (PTI), initially blocked "The Income Tax (Amendment) Bill, 2024," but they remained relatively silent during this session.
Among the passed bills, the Income Tax Amendment Bill 2024 was introduced as an ordinance last year. Its purpose is to amend the Income Tax (Amendment) Ordinance, 2024, in the National Assembly. The bill is intended to remove difficulties faced by taxpayers in implementing higher tax rates on income from federal government securities, based on the ADR ratio, and to rationalize standard tax rates on the whole business income of banking companies.
On the other hand, the "Anti-Dumping Duties (Amendment) Bill, 2025," seeks to make amendments in the Anti-Dumping Duties Amendment Act, 2022, effective from July 1, 2020. The Ministry of Planning, Development and Special Initiatives suggested these changes to give retrospective effect to cover the period from the financial year 2020-21.
In a significant turn of events, the Chinese-grant-funded projects in Gwadar, including the Pak-China Friendship Hospital and the New Gwadar International Airport, have been subjected to Anti-dumping duties during FY 2020-21 and 2021-22. As the Chinese-grant-funding does not cater for such duties, the relevant department does not have any provision for payment of these duties.
The clause in the "Civil Servants (Amendment) Bill, 2025" inserts "Section 15-A" into the Civil Servants Act, 1973, requiring civil servants of BS-17 and above, their spouses, and dependent children to disclose their domestic and foreign assets and liabilities, following digital filing with the Federal Board of Revenue, with public availability through the Federal Board of Revenue, subject to prescribed rules.
Meanwhile, the "Trade Organizations (Second Amendment) Bill, 2025" modifies the Trade Organizations (Amendment) Act, 2025, such that the two-year tenure for office-bearers under section 11 shall apply only to those elected on or after the enactment of the Trade Organizations (Amendment) Act 2025. It is suggested that this provision may disrupt the smooth functioning of trade bodies, particularly federations, chambers, and associations. Consequently, it is essential to omit sub-section (1A) of Section 11 of the Trade Organizations Act, 2013, effective from the date of its enactment.
(This article was originally published in Business Recorder, 2025)
Insights:
- The Tax Laws (Amendment) Ordinance, 2025 empowers tax authorities to recover income taxes immediately after court decisions, based on any assessment order, disregarding statutory timelines or ongoing appeals[2][4][5].
- The amendments in the ordinance are part of broader efforts to streamline litigation processes and address fiscal revenue challenges[3][4].
- The amendments in the Federal Excise Act, 2005 include stringent measures against counterfeit production to improve tax compliance and reduce evasion[5].
- The Income Tax Amendment Bill 2024, passed by the National Assembly, aims to rationalize standard tax rates on the whole business income of banking companies and remove difficulties faced by taxpayers in implementing higher tax rates on income from federal government securities.
- The Civil Servants (Amendment) Bill, 2025, added to the Civil Servants Act, 1973, requires civil servants of BS-17 and above, their spouses, and dependent children to disclose their domestic and foreign assets and liabilities, with public availability through the Federal Board of Revenue, subject to prescribed rules.
- In the Anti-Dumping Duties Amendment Bill 2025, the Ministry of Planning, Development and Special Initiatives suggested changes to give retrospective effect to cover the period from the financial year 2020-21, also affecting Chinese-grant-funded projects in Gwadar, such as the Pak-China Friendship Hospital and the New Gwadar International Airport, which have been subjected to Anti-dumping duties during FY 2020-21 and 2021-22.
- The Trade Organizations (Second Amendment) Bill, 2025, modifies the Trade Organizations (Amendment) Act, 2025, potentially disrupting the smooth functioning of trade bodies, particularly federations, chambers, and associations, as the two-year tenure for office-bearers under section 11 shall apply only to those elected on or after the enactment of the Trade Organizations (Amendment) Act 2025.
