In a bold move to bring luxury institutions under the tax net, the Senate Standing Committee on Finance has approved a proposal to impose taxes on the profits of Pakistan’s major private clubs.

During the committee meeting chaired by Senator Saleem Mandviwalla, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial sharply criticized elite clubs such as the Islamabad Club, calling them centers of extravagance for a privileged few.

“These clubs are not a necessity. They exist purely for the luxury of around 3,000 people,” Langrial said. “They sit on land worth millions of dollars, hold billions in their accounts, and yet remain untaxed. This is unjustified.”

Langrial emphasized that clubs occupying such high-value real estate and generating substantial revenue should no longer be allowed to operate tax-free. “We are proposing a tax on any profit made by these clubs. They cannot continue to benefit from public resources without contributing to the national treasury,” he added.

Lawmakers in the session largely supported the idea, agreeing that elite clubs should not be treated as exceptions in a country striving to increase tax collection and reduce privilege-based exemptions.