NA approves second tax amendment bill in a hurry

ISLAMABAD: The National Assembly on Thursday hurriedly passed a second tax amendment ordinance bill of 2022 without waiting for the report of a parliamentary committee.

Finance Minister Ishaq Dar tabled the bill titled “Tax Laws (Second Amendment) Bill 2022” in the lower house through a supplementary agenda, followed by another motion seeking relaxation of rules to put to vote the bill without the National Assembly Standing Committee on Finance report on the bill.

The ordinance was approved by the National Assembly, and then by the legislature without making any comments on its contents.

On Aug 23, 2022, the government promulgated the second tax amendment bill to impose Rs38 billion through taxes, however, the ordinance has not initially been placed in the parliament to make it a law.

Meanwhile, in October the bill was introduced in the parliament and was referred to the standing committee for its approval.

Mr Dar blamed the committee for not giving their report on the bill and the issue remains unaddressed.

The National Assembly adopted a resolution on Dec 13, 2022 while securing majority votes to extend the Tax Laws (Second Amendment) Bill 2022 for a further period of 120 days, after which the ordinance was valid until Dec 23 this year. However, the second extension of the ordinance was due to expire on April 23.

Through the bill, the government reversed several revenue measures announced in the budget particularly to facilitate traders and raised taxes on tobacco to collect an additional Rs18bn.

The government had introduced a fixed tax scheme for retailers on commercial electricity connection, aimed to collect Rs42bn alone.

However, the FBR has now withdrawn the fixed tax scheme retrospectively from July 1.