Islamabad: In a continuation of its examination of the Finance Bill 2025–26, the Senate Standing Committee on Finance and Revenue met for the second consecutive day under the chairmanship of Senator Saleem Mandviwalla. The meeting, held at the Parliament House, saw critical deliberations unfold around tax justice, policing of the Federal Board of Revenue (FBR), and a sweeping crackdown on tampered vehicles.
The session was attended by an ensemble of senior stakeholders including Federal Minister for Finance and Revenue Muhammad Aurangzeb, Chairman FBR Rashid Mahmood Langrial, Secretary Commerce Jawad Paul.
Senators Farooq Hamid Naek, Syed Shibli Faraz, Anusha Rehman, Ahmed Khan, Mohammad Abdul Qadir, among others. Senator Danesh Kumar and Senator Masroor Ahsab were also present
Chairman FBR Rashid Mahmood Langrial delivered a candid briefing, painting a picture of Pakistan’s wealth and tax disparity.
Ninety-five percent of Pakistan’s population cannot pay taxes. Only five percent control the wealth,” he revealed, adding that “the average annual income of the top 1% households is Rs. 10 million. The focus must shift from expanding the tax net to taxing the rich effectively,Langrial emphasized.
Other alarming figures shared include during the briefing included 6 million registered tax filers, 132 million people under 18 or senior citizens outside the labour force. 67 million unemployed, including a large segment of educated women.
Socially indicating that Despite the intense heat, 95% of Pakistanis don’t own air conditioners, the FBR Chairman pointed out.
During the clause by clause examination of the proposed amendments in Customs Acts, 1969 was incorporating digital cargo tracking system (CTS) to monitor the movement of imported exported transhipment and transit cargos. The Cargo Tracking System will identify the movement of non-duty paid or smuggled cargo through the use of technology while facilitating legitimate goods.
In another amendment on duties it was amendment that No duties and taxes demanded where the value of imported goods through post or courier is less than Rs.5,000. It is proposed that de-minimis limit for courier parcels
may be
revised/reduced from PKR 15,000 to PKR 500 to restrict misuse of the facility of de minimis for individual / personal
use parcels.
A major flashpoint in today’s session was the proposed provision to grant **arrest and money laundering notice powers to FBR officers**.
Chairman Senator Saleem Mandviwalla warned stating There’s a grave risk of misuse. Even a minor FBR officer sending a notice could create chaos.
He further emphasised that Receiving a money laundering notice often leads to business shutdowns. Such notices should require the express permission of the Chairman FBR and the Minister”
Senator Shibli Faraz echoed concerns remarking This is turning Pakistan into a police state. Even taxpayers will flee.
Senator Farooq H. Naek underscored the impact of business because of the same stating AML notices aren’t trivial. They can cripple a businessman’s ability to import or export.
The Finance Minister Muhammad Aurangzeb acknowledged the apprehensions stating that Money laundering notices are indeed a very serious matter and should be reviewed carefully this provision
In a landmark move, the committee approved sweeping amendments to the Customs Act, 1969, targeting the issue of tempered and tampered chassis vehicles. As per the new law, any vehicle found with tampered chassis number, Cut-and-weld modifications or Re-stamped chassis will be presumed smuggled even if registered with any Motor Registration Authority.
FBR Chairman Langrial clarified that Such vehicles will be confiscated and destroyed. They won’t be auctioned again. In principle, these vehicles should be set on fire to avoid resale of parts.”
The Standing Committee recommended that the confiscation and destruction** of such vehicles must occur within 30 days of seizure.
Pakistan Poultry Association proposed amendment Custom duty on grandparents chicks falling under PCT heading 0105.1100 may be brought down to zero percent and the additional sales tax of 3% may kindly be withdrawn.
Similarly Sindh Chamber of Agriculture proposed amendment to Reduce the custom duty on imported tractors from 15% to 5% and also for reconditional tractors
The Senate Standing Committee will reconvene on Sunday, June 15 at 2:00 PM to deliberate on Customs Tariffs and Income Tax Ordinance 2001.