Private companies in Punjab will now be authorised to deduct income tax directly from employees’ salaries, following the approval of The Punjab Finance (Amendment) Bill 2025 by the Punjab Assembly’s Standing Committee on Excise, Express News reported.

The committee, chaired by Agha Ali Haider, approved the bill during a recent session attended by officials from the Excise Department, as well as representatives from the Law and Finance Departments.

According to the bill, accounts officers in private companies will be granted the authority to withhold income tax from employees’ monthly salaries. The move aims to ensure proper tax collection from professionals working in the private sector and to curb underreporting or tax evasion.

“Private companies’ DDOs (Drawing and Disbursing Officers) will deduct taxes before disbursing salaries to their staff,” the committee stated.

The bill stipulates that if tax is not properly deducted, the Excise and Taxation Officer will be held responsible for recovering the due amount. All collected tax will be deposited into the government treasury.

The bill is now set to be presented in a formal session of the Punjab Assembly for final approval.