Need to rid finance bill of errors

ISLAMABAD: Some glaring mistakes have surfaced in the Finance Bill for 2025-26 tabled before parliament, whereby the Aviation Policy of 2015 was given as reference, but currently, the Policy of 2023 is in place.

Secondly, the FBR proposed tax exemption on import or lease of aircraft by Pakistan International Airlines Corporation Limited (PIACL). The question arises what will happen after the possible privatisation of PIA. A question also arose why the same favour was not granted to other airlines operating in the country under the principle of equity.

There is another issue that on the lease of aircraft, there is a charge of GST on the lease amount, but it does not clarify how this issue would be settled.

Earlier, the mistake on the pension tax surfaced in the proposed Finance Bill 2025-26, which was accepted by the FBR high-ups who commented that it was unintended and would be rectified. If the Finance Bill was approved in its existing shape, it could result in bringing many pensioners into the tax net.

The Finance Bill 2025-26 gives reference to the Aviation Policy 2015. As a matter of fact, the Aviation Policy of 2019 was enacted, and in the latest revision, the Aviation Policy of 2023 was operational at the moment.

Secondly, there is no concept of registration of an airlines, but there is a requirement for a licensing and operation certificate under the ambit of the Civil Aviation Act 2023. There is an immediate need for rectification in Part VI with regard to tariffs in the Finance Bill 2025-26.

The FBR has constituted anomaly committees to rectify the Finance Bill before getting the assent of parliament to convert it into an Act of Parliament.