Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwala, has approved a proposal to impose taxes on the profits of the country’s major private clubs, citing their exclusivity and significant financial assets.
While briefing the committee, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial noted that elite clubs such as the Islamabad Club cater to just a few thousand members yet hold billions of rupees in assets. “These clubs sit on land valued at one million dollars each.
A small number of people are enjoying luxury at the expense of the nation’s resources,” Langrial stated, adding that taxing the profits of such clubs is both fair and necessary.
In addition to the club tax, Chairman FBR informed the committee about proposed changes to income tax slabs in the upcoming budget. The plan includes exempting annual incomes up to Rs600,000 from taxation.
For incomes between Rs600,000 and Rs1.2 million, a modest 2.5 percent tax rate has been proposed. “Paying Rs1,000 in tax on a monthly salary of Rs100,000 will not cause hardship,” Langrial argued.
However, some senators expressed differing views. Senator Mohsin Aziz advocated for increasing the income tax exemption threshold to Rs1.2 million, citing inflationary pressures.
Senator Shibli Faraz added that the purchasing power of Rs50,000 has effectively fallen to Rs42,000 due to inflation, underscoring the need for tax relief for lower-income citizens.
Meanwhile, the committee rejected the proposal to impose additional taxes on online commerce, providing temporary relief to Pakistan’s growing e-commerce sector.
The final decisions on these tax measures will be debated and confirmed as part of the federal budget for 2025-26.
