ISLAMABAD, Jun 17 (APP): The Senate Standing Committee on Finance and Revenue, under the chairmanship of Senator Saleem Mandviwalla, held its fifth consecutive session to deliberate on the Finance Bill 2025 and the Annual Budget Statement laid before Parliament.
Federal Minister for Finance and Revenue Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kayani, Chairman FBR Rashid Mahmood Langrial, and senior officials of attached departments participated in the session.
The committee acknowledged the presence of both ministers sitting together in the sessions — a development hailed as unprecedented and reflective of increased government responsiveness during this year’s budgetary process.
A notable number of senators actively participated in the proceedings, demonstrating what Chairman Mandviwalla termed “a powerful and democratic health of budget scrutiny where views cut across party lines for the public good.” He further added, “I value the contributions of all senators, their opinions and recommendations are vital, as the budget process should be transparent and in the public’s interest.”
The committee discussed a range of critical recommendations and policy matters and strongly recommended withdrawing the proposed 18% GST on solar panels.
Members observed that ahead of the budget, certain stakeholders had imported and dumped solar equipment in anticipation of the tax hike. The chairman emphasized the discriminatory nature of the move, saying, “The committee rejects the sudden imposition of GST on solar imports and urges immediate withdrawal.”
In meeting 7 percent pension increase for retired government employees was proposed and also proposals were put forward to extend the duration of family pensions.
The Higher Education Commission (HEC) was recommended for additional funding allocations.
The imposition and subsequent withdrawal of GST in FATA and PATA drew thought provoking discussions in the committee. During the debate it was established that the timeline of the FATA tax issue had been fully documented.
The committee expressed serious concern over the increase in GST from 12% to 18% on small vehicles, including 850cc cars. Proposals were discussed to moderate the tax to 14% or 15% instead.
Senator Shibli Faraz pointed out the inequity, noting that while tax relief is being extended to certain regions, small car owners continue to face high taxation.
From the next fiscal year, iron scrap importers will be obligated to sell only to registered manufacturers. Officials said this measure aims to eliminate the misuse of “flying invoices” and commercial manipulation in scrap trade.
The Committee also held into consideration the recommendations put forward by Senator Farooq Hamid Naek related to Tax Fraud and its offences and punishments
Senator Mandviwalla praised the overall conduct and participation of members in the budget discussions, highlighting that the nature of engagement this year signifies a transparent and participatory process reflective of public will.
The committee witnessed enthusiastic participation from members senate. Notable Senators including Senators Shibli Faraz, Anusha Rahman Ahmad Khan, Fesal Vawda, Muhammad Abdul Qadir, Mohsin Aziz , Kamran Murtaza, Munzoor Ahmad, Agha Shahzaib Durrani, Ahmed Khan, Zarqa Suharwardy Taimur, Waqar Mehdi, Jam Saifullah Khan, Irfan Ul Haq Siddique, Khalida Ateeb and other honourable members attended today’s meeting
The committee will continue its deliberations on Customs Act, tomorrow at 11:00 am.
