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In connection with the news item published in the national press regarding tax payment by the parliamentarians, the issue was discussed in the PAC meeting today which was attended by the Secretary Finance and Chairman FBR along with his team. The PAC members expressed annoyance on the reports appearing in the press that they are not paying tax on their income. They stated that income tax is deducted on salary income of all the parliamentarians and they also pay tax on their agricultural income to the provincial governments. They desired that FBR should clarify this factual position.
It is hereby clarified that income tax is deducted on the salary income of all the parliamentarians under section 149 of the Income Tax Ordinance, 2001. As far as agricultural income of the parliamentarians from the yield of agricultural land is concerned, under the constitution, Federal Government cannot tax agricultural income. However, the same is taxable under the provincial Agricultural Income Tax law.