Rs17.5tr budget sails through National Assembly amid opposition protest

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ISLAMABAD: On Thursday, the Lower Chamber of Parliament highlighted the next fiscal year’s federal budget after some amendments to the Finance Bill 2026.

The budget for the financial year 2025-26, two weeks ago, was unveiled by a total extraction of Rs 17.57 trillion.

Finance Minister Mohammad Aurangzeb introduced a finance bill in the Lower House, where it has the support of the ruling coalition, including the Pakistan Peoples Party (PPP).

After the voting process, the finance bill was approved with a majority vote after reading the clause and amendment.

During the proceedings, Fenman Aurangzeb submitted amendments to the Sales Tax Act 1990, which also included the Finance Committee, which ordered the arrest of traders involved in tax fraud over Rs 50 million.

The first version of this proposal tried to give this power directly to the tax commissioners.

All amendments to the Sales Tax Act introduced by opposition members were rejected by a majority vote.

The Finance Bill 2025 has also introduced a revised income tax structure for salaried persons. The income tax earners will be exempt from the income tax annually. A 1 % tax will be levied on salaries from Rs 600,000 to Rs 1.2 million.

Similarly, people with annual income will pay a fixed tax of Rs 6,000 between Rs 1.2 million and Rs 2 million.

Moreover, those who are earning between Rs 2.2 million and Rs 3.2MN will be taxed at Rs 116,000. Between Rs 3.2 million and Rs 4.1 million for annual income, the tax will be Rs 346,000.

Meanwhile, Prime Minister Shahbaz Sharif praised the entire economic team, especially Finance Minister Mohammad Aurangzeb, for his hard work and dedication to the federal budget. He also thanked the federal cabinet and its political parties for their support in finalizing the budget.

Earlier, the Federal Cabinet had approved the Finance Bill 2025 with amendment before being presented to the National Assembly for voting in the National Assembly, in a meeting chaired by Prime Minister Shahbaz.

In a separate decision, the cabinet decided to set up a committee to resolve a specific agenda item related to gas policy. The committee will submit its recommendations to the Supreme Court as part of the ongoing legal proceedings.

Addressing the National Assembly during the budget meeting on Thursday, Pakistan Peoples Party (PPP) chairman Bilawal Bhutto Zardari welcomed the federal government’s decision to include key proposals in the budget presented by his party.

The former Foreign Minister praised the current government for increasing the Benazir Income Support Program (BISP) record 20 %, and termed it a “commendable move” and clearly reflected the government’s commitment to social protection.

According to the state news agency, the PPP leader believed that the government had increased the annual income tax exemption limit for salaried persons from Rs 600,000 to Rs 1.2 million.

Bilawal also supported the PPP’s active role in getting a 50 % reduction in taxes on the solar panel.

The PPP chairman added that the party has successfully emphasized the amendment to limit the Federal Board of Revenue (FBR) arrest powers.

He explained that under the revised provisions, the arrest options can only be used only after the end of the interrogation of sales tax fraud.

Bilawal Bhutto-Zardari thanked Prime Minister Shahbaz Sharif and Finance Minister Mohammad Aurangzeb for accepting the recommendations of the majority of PPP.

He added, “Our commitment is that every budget decision should work in the national interest and give priority to the welfare of ordinary citizens.”

– with additional input from the app