In a significant policy shift, the Federal Board of Revenue (FBR) has proposed eliminating the Seventh Schedule of the Income Tax Ordinance 2001—effectively moving banks under the standard corporate tax regime.

During a Senate Standing Committee on Finance session, FBR Chairman Rashid Mahmood Langrial emphasized that banks should no longer receive separate tax treatment and must be taxed like all other companies. The committee, led by Senator Saleem Mandviwalla, reviewed and approved the proposed amendments as part of the Finance Bill 2025–26.

FBR Member Inland Revenue (Operations), Hamid Atiq Sarver, provided a detailed briefing on the legal and technical implications of the change. Supporting the proposal, SECP Chairman Akif Saeed confirmed that banks are registered as regular corporate entities and should follow the same tax framework.

Additionally, Senator Mandviwalla criticized the performance of FBR’s anomaly committees and endorsed the proposal to repeal the Special Economic Zone (SEZ) Act, citing the government’s decision to halt new tax exemptions. He also supported limiting taxpayer audits to a three-year window to streamline compliance.