Senate passes Civil Servants Amend Bill
The Senate on Thursday passed the Civil Servants (Amendment) Bill, 2025, aimed at enhancing transparency and enabling public access to asset declarations of senior government officials.
The bill, moved by Senator Azam Nazeer Tarar on behalf of Senator Ahmed Khan Cheema, Minister for Establishment, seeks to amend the Civil Servants Act, 1973, as reported by the Standing Committee.
The legislation is intended to further operationalise the Government Servants (Conduct) Rules, 1964 — specifically Rules 12, 13, and 13-A — and align them with the provisions of the Right to Information Act, 2017.
Under the proposed framework, asset declarations of officers in Basic Pay Scale (BPS) 17 to 22 — including assets beneficially owned domestically or abroad by the officials or their family members — will be filed digitally and made publicly accessible.
The bill provides that sufficient safeguards will be ensured to protect sensitive personal information, such as national identity numbers, residential addresses, and bank or bond account numbers.
The Federal Board of Revenue (FBR) will maintain the digital platform, while the Establishment Division will be equipped with a robust framework, resources, and tools to conduct risk-based verifications of the submitted declarations.
Meanwhile, senators expressed grave concerns over the country's fiscal policies, particularly the imposition of taxes on essential sectors and the economic hardships facing ordinary citizens.
While participating in the general discussion on Budget 2025-26, Senator Dost Ali Jeesor criticized the 18 percent solar tax, calling it unfair and burdensome on low-income families who invest in solar panels and batteries.
He called for the total elimination of the tax, asserting that the recent cut — lowering the GST on solar panels by more than 10 percent from the previous 18 percent — remains insufficient.
Senator Muhammad Abdul Qadir presented an overview of the federal budget, said that we would need more loans to finance ongoing development projects, pension disbursements, and social welfare programs like BISP.
He cautioned that Pakistan's debt servicing costs are alarmingly high, with interest payments consuming 30 to 35 percent of loans taken by successive governments.
Jam Saifullah pressed for the commencement of the long-delayed M-6 Motorway project, criticizing insufficient PSDP allocations. He also raised environmental concerns, opposing taxes on electric and hybrid vehicles, which he said undermine national climate goals. Furthermore, he called for increased support for salary earners and pensioners to fight inflation.
Senator Haji Hidayatullah Khan highlighted the disproportionate tax burden on the poor, deeming the 10 percent pay raise for government employees inadequate in the prevailing economic crisis. He warned of declining agricultural productivity and stressed urgent government intervention to revive the sector.
Calling solar energy a vital resource for Pakistan's future, Hidayatullah demanded the removal of taxes on solar panels to encourage wider adoption.
Citing a World Health Organization report, he stressed that 45 percent of people live below the poverty line and over 270 million children remain out of school, underscoring the urgent need to prioritize education and healthcare.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
26 minutes ago
- Business Recorder
PARTLY FACETIOUS: There is a need for structural changes in taxation system
'Chairman FBR urged the Senate body to abolish the Seventh Schedule of the Income Tax Ordinance…' 'Which incidentally dates back to 2001.' 'Hey, that ordinance has been amended from time to time and like other countries remains largely valid…' 'Excuse me, but there is a need for structural change in our taxes – our reliance on withholding taxes that are levied in the sales tax mode, which you must know is an indirect tax whose incidence on the poor is greater than on the rich, but credited dishonestly by the FBR under direct tax collections…' 'They are kinda easy to collect – you appoint withholding agents from the private sector, increase their work load don't pay them a penny, and they collect it…' 'Look at the glass as half full: you collect more while you don't burden your staff and…' 'The private sector is reeling, let me cite the Finance Division's data on large scale manufacturing sector: negative 1.4 percent in the outgoing year, negative under 0.5 percent last year and this negativity…' 'The glass is half full, my friend.' 'Right besides the Chairman has claimed that enforcement measures have generated a close to 380 billion rupees and…' 'But the successful enforcements he mentioned were from indirect taxes, excise duty on….on was it sugar or cigarettes? And that tax is passed onto the consumers anyway, so…' 'Anyway one question, if the seventh schedule is abolished would the banks be as amenable to lending around 1.2 trillion rupees to the poorly performing power sector - money borrowed to retire the circular debt?' 'If you recall, the head of our premier intelligence agency did, how can I put it, convince the Independent Power Producers to agree to the renegotiations and….' 'I am aware of that, my question is if the banks do not get special treatment then would they agree to lending to a sector where they are over exposed and…' 'I am not sure, but why doesn't the Chairman consider generating revenue from some other source. India for example, generates huge amounts from its stock market activities…' 'Hey, our stock markets are used as a yardstick to assess government performance.' 'But the bulk of our population, the poor, the lower middle and middle income earners do not invest in the stock market…' 'Shut up silly. You don't know the macro picture.' 'I stand corrected.' Copyright Business Recorder, 2025
Business Recorder
26 minutes ago
- Business Recorder
Budget to consolidate economic gains, NA told
ISLAMABAD: Amid criticism from opposition lawmakers, Minister of State for Finance Bilal Azhar Kayani on Friday said that the budget is aimed at further consolidating economic gains, providing relief to the people, and continuing the reform process. He said the reforms would also extend to tax fraud investigations, with new safeguards to prevent arbitrary arrests. Under the new policy, arrests during investigations would only occur in cases of sales tax fraud exceeding Rs50 million, and only after approval from a three-member Federal Board of Revenue (FBR) panel. The opposition lawmakers; however, sharply criticised the budget, saying it lacked vision and heavily favoured the handful elite. They decried the increase in allocations to the Benazir Income Support Programme (BISP), which rose from Rs592 billion to Rs716 billion, arguing it came at the expense of education, whose allocation remains comparatively low. PTI says 'federal budget favours elite, ignores masses' The opposition also slammed what they termed a symbolic 10 percent salary raise for government employees and a seven percent hike in pensions for retired government employees. They noted the budget failed to increase the minimum wage, allegedly due to pressure from industrialists. The Finance Ministry did announce some tax relief for salaried individuals, a promise previously made by Prime Minister Shehbaz Sharif. But opposition members ridiculed the tax relief for those earning above Rs1.2 million annually, calling it a 'cruel joke.' At the outset of the session, Federal Minister for Finance Muhammad Aurangzeb laid four Statutory Regulatory Orders (SROs) before the House, issued under the Customs Act and Income Tax Ordinance. He confirmed to the speaker that he would conclude the budget debate on Monday. Several lawmakers belonging to both opposition and treasury participated in the ongoing debate on the Finance Bill for 2025-26, voicing a wide range of concerns and suggestions. Pakistan People's Party (PPP) MNA Nafeesa Shah called for greater support to the agriculture sector. Saba Talpur echoed this sentiment, urging the government to cut prices of seeds, fertilisers, and pesticides to support farmers. Junaid Akbar Khan of PTI said the budget had nothing for the people and called attention to sacrifices made by Khyber Pakhtunkhwa in the war on terror. Agha Rafiullah of PPP demanded that the government review proposed family pension reforms and remove limitations affecting spouses and disabled children. Sahibzada Hamid Raza of SIC criticised the apparent neglect of health and education sectors in the budget. Minister for Religious Affairs Muhammad Yousaf described the budget as balanced and praised the government's handling of Hajj arrangements, noting that over 115,000 Pakistani pilgrims participated this year. Saudi Arabia awarded Pakistan for its management, and planning for next year's pilgrimage has already begun, he added. Qaiser Ahmed Sheikh, Minister for the Board of Investment, said macroeconomic indicators were improving, with inflation falling and remittances rising. He urged all political parties to agree on a Charter of Economy to attract investors. Minister for Public Affairs Rana Mubashir Iqbal said Rs250 billion had been allocated for Balochistan, including Rs100 billion for road infrastructure and further allocations for dams, agriculture, energy, education, and health. Minister of State for Religious Affairs and Interfaith Harmony Kesoo Mal Kheal Das stressed that no new taxes had been imposed on agriculture and reaffirmed the government's commitment to completing the Sukkur-Karachi motorway. Murtaza Mahmud lauded the government's steps toward economic stability, while Pullain Baloch called for tax relief for the public. Law Minister Azam Nazeer Tarar reiterated Pakistan's stance against Israeli aggression – whether in Gaza, Lebanon, Iran, or elsewhere – stating that the country will continue to oppose and condemn such actions. Other lawmakers who took part in the debate included Fayyaz Hussain, Azimuddin Zahid, Shaharyar Khan Mahar, Osama Sarwar, Noor Alam, Farah Naz and Zulfiqar Ali, Zahra Wadood. Copyright Business Recorder, 2025
Business Recorder
26 minutes ago
- Business Recorder
Arrests for tax fraud: Major changes made in ST law thru finance bill
ISLAMABAD: The Federal Board of Revenue (FBR) has introduced major changes in sales tax law through Finance Bill (2025-26) for the arrest of those involved in tax evasion or tax fraud. According to a statement issued by the FBR on Friday, Finance bill is currently being discussed in the National Assembly and among various business circles. An impression has been created that some of the amendments introduced in the finance bill are not understood well by the public at large. Arrest for tax fraud: Senate panel for defining a threshold For instance, the legal provisions for the arrest of those involved in a tax fraud have already been provided under Section 37A of the Sales Tax Act, 1990 along with an elaborate procedure to be followed after the arrest which involves intimating the Special Judge immediately and the production of such person before Special Judge within 24 hours. However, the proposed amendment now restricts the powers of the officer to arrest by making prior inquiry after approval of the Commissioner Inland Revenue (CIR). Only on the basis of the findings of the inquiry CIR will authorise the investigation which would give the investigation officer the powers of an officer in charge of a police station under Code of Criminal Procedure, 1898 (Act V of 1898). The arrest can only be made with the prior approval of CIR if the investigation officer has reasons to believe that a tax fraud may have been committed by a person. The FBR further stated that the new legal provision further provides that if the arrest is malafide, the matter will be referred to the Chief Commissioner for fact finding inquiry. This shows that in contrast to the earlier provision where an Assistant CIR could arrest an offender, the new provisions bring transparency in the process by a mandatory prior inquiry and investigation and finally permission by the CIR. Moreover, certain changes and amendments are also necessary to reassure the compliant taxpayers that those evading taxes or involved in tax fraud are dealt with by the state with an iron hand. FBR Chairman Rashid Mahmood Langrial has expressed his willingness to discuss the recent changes made in the tax laws and introduce changes wherever needed, for example, the provisions related to arrest could be revised to mandate the permission of multiple senior officers before any arrest. Furthermore, in order to ensure that these powers are not misused by the authorised tax officers against the compliant taxpayers and business community, Prime Minister Shehbaz Sharif has formed a high-powered committee, which will be headed by Minister for Finance and Revenue, to re-evaluate the proposed amendments and suggest adequate safeguards to prevent potential misuse of powers. The other members of the Committee will include Ministers of Law and Economic Affairs Division, Minister of State for Finance, SAPM Industries and Chairman FBR. The Committee will also examine various options to ensure that legal economic activities are not stifled and propose additional protective measures against unlawful use of authority. The Committee will submit its recommendations to Prime Minister in three days. FBR is committed to safeguard the legal rights of the compliant taxpayers and to increase the tax collection and state revenues by discouraging non-compliant taxpayers and acknowledging those who are paying their due share to the state, FBR added. Copyright Business Recorder, 2025
