ISLAMABAD – The Senate Standing Committee on Finance on Wednesday approved a proposal to impose taxes on online educational institutions and academies as part of broader budgetary measures for the upcoming fiscal year.
The decision was taken during a session chaired by Committee Chairman Senator Saleem Mandviwalla.
FBR Chairman Rashid Langrial briefed the committee, saying that the online academies are earning up to Rs20 million per month, and the individuals teaching online would now be liable to pay taxes.
During the session, Senator Shibli Faraz objected to taxing individuals with monthly salaries ranging between Rs600,000 to 1.2 million, arguing that with inflation, a salary of Rs100,000 effectively amounts to PKR 42,000 in real value.
FBR also proposed taxation on income generated by elite clubs.
However, Mandviwalla opposed the idea while FBR Chairman insisted the move targets lavish clubs benefiting only around 300 people and not the general public. Most committee members supported taxing club revenues.
Minister of State for Finance Bilal Azhar Kayani added that taxes would apply only if club income exceeds expenses, noting that this primarily impacts privileged groups.
Additionally, the committee approved a proposal to raise the property purchase limit for non-filers. FBR had initially proposed a 130% cap on property value compared to a non-filer’s declared assets, but Senator Mohsin Aziz recommended increasing the limit to 500%. The proposal was accepted by the committee.
Finance Minister Muhammad Aurangzeb informed the panel that penalties on non-filers were increased last year and that the government is taking concrete steps to bring non-filers into the tax net.
The FBR also suggested restrictions on property and vehicle purchases by non-filers in the forthcoming budget.
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