‘Balanced’ budget targets growth, fairness, and fiscal discipline, says FinMin

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ISLAMABAD: The budget for the fiscal year 2025-26 between financial support and reforms is balanced, Finance Minister Mohammad Aurangzeb on Monday urged measures to reduce public burden, support the industry, promote revenue, and ensure fair taxes for long -term, export development.

Ending the debate on the general discussion of the budget, the Minister announced several taxes and relief measures which were included in the budget following the suggestions of the finance committees of both the National Assembly and the Senate.

He said that during the regional uncertainty, the government is committed to economic stability.

Aurangzeb said that the government has announced a major relief for the salaried class, which states that the income tax rate for those who earn up to Rs 3.2 million has reduced the proposed tax rate from Rs 0.6 million annually and Rs 1.2 million from 2.5 % to 1 %.

He made it clear that no tax will be levied on pension journey or gravitation, adding that people who receive pensions worth more than Rs 10 million will be taxed, while people over 75 are fully exempt.

On the solar energy front, the minister made it clear that the sales tax on the components of the imported solar panel has been reduced to 10 % and will be applicable to only 46 % imported items, which will result in an increase of only 4.6 % of the imported solar panel.

The finances have also condemned the increase in opportunistic storage and artificial prices by some market players before the implementation of the new tax, and warned that strict legal action would be taken with the provincial governments.

“Such manipulation and storage are condemnable,” he said.

The Minister said that under the special direction of the Prime Minister, the powers of the Federal Board of Revenue (FBR) powers have been strictly controlled.

In cases of Rs 5 lakh or more, the FBR cannot arrest anyone without a judicial warrant, and only under specific conditions, such as deliberately stealing, fugitives, or formal references for legal action after three notices.

The three -member FBR committee will also approve the arrests, and the accused should be presented to a special judge within 24 hours, which will ensure the protection of discretionary detention and misuse of the authority.

The Finance Bill 2025-26 proposed restrictions on large procurement of assets by non-documents. However, after the Prime Minister’s direction, these restrictions will not apply to Rs 50 million on residential houses, up to Rs 100 million on commercial plots or properties, and the purchase of vehicles up to Rs 7 million.

In addition, under the current law, the Capital Guinness Tax will not be applicable on the property sold after six years of purchase, provided it was obtained before July 1, 2024.

However, such transactions will be subject to 4.5 % -6 % withholding tax on purchase, which they say have usually been returned to file returns.

He added that the property, which for personal use for 15 years or more, would not be subject to this withholding tax, he added that in view of the positive contribution of e -commerce in the economy, the government had given the tax rational status to help it flourish.

Aurangzeb added that in recent years, export facility schemes have allowed exporters to import raw materials without paying taxes and duties, but the policy unintentionally distorted market prices of local farmers and yarn, which badly affected local farmers.

According to the Finance Minister, the government has proposed to reduce the gap between imported and local products and impose sales tax on the import of raw cotton and yarn to help the domestic agriculture sector.

The Finance Minister said that new tax measures have been carefully prepared to prevent the burden on the common man.

The minister said, “Instead, focus is being focused on high -income sections and wealthy businesses. He added that under the special instruction of Prime Minister Shahbaz Sharif, export -based industries have been exempted from new taxes to maintain global competitiveness.”

In terms of income tax reform, he proposed to increase the tax rate on mutual funds and similar devices, which, according to other sources of income, raised it from 25 % to 29 %.

Meanwhile, the profit on investment in public securities by companies will now be taxed 20 % from current rates.

He added, “The government has proposed a tax of Rs 10 per broiler, citing the minimum tax contribution of the poultry industry.”

The minister has warned that Iran’s ongoing tension could affect regional economic stability.

However, he assured the House that the government was overseeing the progress.

“Prime Minister Shahbaz Sharif formed a high -level committee on June 14 to assess the impact of the dispute on Pakistan’s economy.”

He said that the government has been pledged to attract the economy to sustainable development while document the protection of the weak and the unused capacity of the domestic market.

He described the economy’s documents as the most important step of the budget, which would help reduce informal, increase exports and improve revenue.

He said that the new budget is aimed at promoting industry, supporting construction, and introducing environmental tax measures to tackle environmental degradation.

The Finance Minister said that a significant increase in the budget of the Benazir Income Support Program (BISP)-which is from Rs 592 billion to Rs 716 billion-will benefit more than 10 million families with less income.

“Our aim is to transform these families into self -dependents by providing opportunities for resources and skills,” he said.

The Finance Czar, along with the British Asian Trust, announced a initiative to equip young people with the skills associated with the long -term job market.

“The agriculture sector, especially to help the small -scale farmers, is launching a suicide -free loan program, which is offering loans of up to Rs 1 million to farmers with 12.5 acres of land.”

He added that these loans will cover seeds, fertilizers, pesticides, diesel and other essentials. Health and crop insurance facilities will also be provided under this scheme.

“The government will also introduce an electronic warehouse receipt system, which will allow farmers to safely store crops and get better market prices, which will help protect national food.”

He highlighted the upcoming policy measures, including a new industrial policy, progress on the Electric Vehicle (EV) policy, and comprehensive energy sector reforms, which aims to achieve sustainable development.

He also announced a 20 -year loan scheme to help build or buy houses for low -income people. Under the Finance Program involved, he said that more than 193,000 women have been provided loans of about Rs 14 billion.

“In the coming year, women who support the Asian Development Bank will be extended to Rs 14 billion.”

He confirmed the government’s commitment to complete the development projects to ensure the success of the budget and the country’s economic recovery.