Friday, Feb 21, 2025 | 22 Shaban 1446
Friday, Feb 21, 2025 | 22 Shaban 1446
ISLAMABAD: Federal Board Revenue (FBR) Chairman Rashid Mahmood Langrial Wednesday said banks have deposited Rs72 billion by December 31, 2024 to the FBR after promulgation of Income Tax (Amendment) Ordinance, 2024 which brought changes in Advance Deposit Ratio (ADR) of banks.
FBR Chairman informed the Senate Standing Committee on Finance that all issues between the banks and tax department have been resolved through the said Ordinance. In the past, banks have gone into litigation against the FBR on the issue of Advance Deposit Ratio (ADR).
“We are committed to increasing the tax on bank profits to support the government’s financial needs,” Finance Minister Muhammad Aurangzeb remarked. “Banks must play their part in helping the government.”
The Senate Standing Committee on Finance and Revenue convened today under the chairmanship of Senator Saleem Mandviwalla here at the Parliament House, addressing critical financial and trade issues, including tax reforms, money bills, and challenges faced by the customs department in managing border trade.
In his opening remarks, Chairman Saleem Mandviwalla highlighted the ongoing debate over bills labeled as “money bills, he said that The law brought so far has been referred to as money bills, and it is a matter of amending the law, to take measures against non filers He added, “The government informed us that the Speaker has declared it a money bill, but when I spoke to the Speaker of the National Assembly, he denied labeling anything as such.”
The committee also discussed the powers of the Senate in handling money bills, with Mandviwalla emphasizing that while the Senate may consider such bills, it does not have the authority to vote on them.
“According to the law, if there is a disagreement in the Senate regarding a bill’s status as a money bill, the Speaker of the National Assembly will make the final decision,” Mandviwalla explained. Senator Shibli Faraz supported this view, suggesting that the opinion of the Law Ministry should be sought to clarify the matter.
Senator Shibli Faraz pointed out that in January 2025, Rs 440 billion had been returned to banks.
On the subject of remittances, Deputy Governor of the State Bank, Inayat Hussain, reported that Pakistan’s remittances saw a significant increase in recent years, rising from $23 billion in 2020 to $31 billion in 2022.
However, the forecast for 2023 projects a decrease to $27 billion, though the government expects a rebound to $35 billion in 2024. “The incentives we’ve introduced have successfully increased remittances,” said Hussain, emphasizing the role of policy in driving financial inflows.
Copyright Business Recorder, 2025
