Islamabad (Lord Media): The Senate Standing Committee on Finance has approved proposals to impose taxes on profits derived from insurance. Federal Finance Minister Muhammad Aurangzeb stated that the country needs to move towards new business models. The super tax has been reduced, and financing has been increased.
During the committee meeting, a clause-by-clause review of the Income Tax Ordinance 2001 was conducted, with detailed discussions on tax laws and financial reforms. FBR officials presented progress on the digital monitoring of business activities and the implementation of an advanced digital system.
The Large Scale Manufacturing Association expressed concerns over the proposed refund system, stating that the industry is already under financial pressure and will not pay double taxes.
The FBR Chairman indicated that industries not integrating into the digital system may face an additional 2% tax. Insurance policies maturing after seven years will be exempt from the new tax.
The telecom industry targeted FBR’s goals, prompting the committee chairman to seek assurance from telecom companies to increase advance tax to 8%.
