• Drops proposal for 4pc uniform rental valuation on commercial properties
• Exclusive clubs charging Rs1m or more membership fees brought under tax net
• Arrest powers of tax officials curbed; prior approval and inquiry mandatory

ISLAMABAD: A parliamentary committee on Friday rejected a proposal to fix a uniform rate for rental valuation of commercial properties, while endorsing another measure to expand the tax net to high-end clubs nationwide and reinforce safeguards against tax fraud.

The National Assembly Standing Committee on Finance resumed deliberations on the Finance Bill 2025 on Friday, as Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial and his team addressed queries raised by committee members. The session was chaired by MNA Naveed Qamar, who provided input on various provisions of the Bill.

On the issue of a uniform 4 per cent rental valuation rate on commercial properties, MNA Mirza Ikhtiar Baig urged the tax authority to lower the proposed rate, a suggestion FBR chairman countered by insisting the rate could not be reduced.

Mr Rashid noted that under the existing arrangements, tax officers held discretionary power to determine rental valuations. “If the committee is unwilling to delegate authority of the uniform rate, we are prepared to withdraw the proposal altogether,” said the FBR Chairman.

MNA Usama Mela said that a 4pc rate might be feasible in urban centres but would pose challenges for rural areas.

The FBR chairman responded that the system should be........

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