The National Assembly Standing Committee on Finance and Revenue has rejected a proposal in the Finance Bill 2026-27 that would have allowed the Federal Board of Revenue (FBR) to access taxpayers’ bank account information through scheduled banks.

Committee members expressed serious concerns about privacy and the possibility of misuse of personal financial data, despite assurances from FBR officials that any access would be limited and routed through the State Bank of Pakistan.The committee ultimately decided not to grant the tax authority direct access to account-holder information.

During its review of budget measures, the committee also approved the government’s proposed income tax rates for salaried individuals, although several lawmakers argued that the relief provided to middle-income earners was too small.Members highlighted that salaried taxpayers contributed substantial revenue while receiving limited tax relief.Finance Minister Muhammad Aurangzeb maintained that further concessions were not financially possible this year.

The committee approved a special excise duty on imported luxury vehicles, setting a 40pc rate for vehicles between 2,000cc and 3,000cc and a 41pc rate for vehicles above 3,000cc.

It also rejected certain FBR proposals aimed at imposing stricter penalties on filers and non-filers, arguing that taxpayers facing genuine difficulties such as illness should not be unfairly punished.

At the same time, lawmakers approved significantly higher penalties for proven concealment of taxable income or assets, non-compliance with audit requirements, and submission of false information.The committee also endorsed higher surcharges for late tax return filing.

In addition, it approved revisions to withholding tax rates on goods and services, generally standardising them at 7pc, while retaining a 4pc rate for IT and IT-enabled services and imposing a 15pc rate on professionals and independent software developers.