The Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has urged the Senate Standing Committee on Finance to abolish the special tax treatment given to banks. He recommended that banks be taxed under the same rules as other companies.
During his briefing, Langrial questioned why banks are exempt from the normal tax regime applied to registered companies. He emphasized, “Banks are businesses, and their tax treatment should be the same as other companies.”
Langrial specifically criticized the Seventh Schedule, also known as the Banking Schedule, which was added to the Income Tax Ordinance in 2007. He called for its removal to create a fairer tax system.
The committee also discussed the FBR’s efforts to limit taxpayer audits to three years. Senator Mandviwalla raised concerns about frequent audits, mentioning a case where an Islamabad school was audited repeatedly without major findings.
Furthermore, FBR officials explained proposed legal and technical amendments related to banking tax laws. However, the committee decided to postpone some amendments for further review in upcoming sessions.
As the debate over tax reforms and the future of Special Economic Zones (SEZs) continues, the committee is focused on finalizing key changes to the Finance Bill soon.