ISLAMABAD: The National Assembly passed the Tax Laws (Amendment) Bill, 2024 on Monday, giving legal backing to the federal government’s tax proposals.
The house took the bill, produced by the Minister for Law and Justice Azam Nazeer Tarar, as a supplementary agenda.
The amended bill aimed to implement the government’s taxation proposals, aiming to resolve a significant backlog of appeals before the Commissioner IR (Appeals) and Appellate Tribunals (ATIR).
Delays in case hearings and disposal, coupled with other issues, have led to approximately Rs 2 trillion being tied up in litigation before the ATIR.
Prior to this, a Senate Special Committee convened at the Parliament House to review and propose changes to the Money Bill, namely the Tax Laws (Amendment) Bill, 2024.
Attorney General of Pakistan, Mansoor Awan, outlined the primary objective of the Money Bill, emphasizing the need for a dedicated ‘Director General Law’ position within the Federal Board of Revenue (FBR) to expedite tax litigation resolutions.
Federal Minister for Law and Justice Azam Nazeer Tarar, Chairman FBR Malik Amjed Zubair Tiwana, and senior officials from the Finance division and FBR were present at the meeting. The Attorney General highlighted the Money Bill’s role in combating tax evasion and expanding the tax base amidst financial challenges.
Furthermore, the Money Bill streamlines the appeals process before the High Court, reducing the period from ninety to thirty days, and limiting the Commissioner Appeal’s jurisdiction to cases involving tax values under 10 million rupees. Cases exceeding this value assessment threshold have the right to appeal before Appellate Tribunals.
Following thorough discussions, the Special Committee approved the Money Bill with amendments.
The upper house of the Parliament also approved four recommendations from the Special Committee concerning the Tax Laws (Amendment) Bill, 2024. Farooq Hamid Naek, the Convener of the Special Committee, presented the committee’s report in the House.
Following a detailed discussion on the Tax Laws (Amendment) Bill, 2024, the committee unanimously proposed amendments. These included inserting the phrase “or a mixed question of law and fact” after the word “law” in certain clauses. Additionally, amendments were recommended in Clause 4, pertaining to sections 132 and 133 of the bill, to refine the appeal process and clarify procedural matters.
Minister for Law and Justice, Azam Nazeer Tarar, briefed the House on the bill’s significance, emphasizing its aim to streamline tax legislation and address pending cases.
The approved recommendations will be forwarded to the National Assembly for further consideration and potential inclusion in the Tax Laws (Amendment) Bill, 2024.
