ISLAMABAD – The National Assembly on Thursday passed the Rs17.57 trillion federal budget for the fiscal year 2025-26, approving the Finance Bill 2025 with several amendments despite opposition resistance. The session was presided over by Speaker Ayaz Sadiq and marked by intense debates over key fiscal measures.
Finance Minister Mohammad Aurangzeb presented the Finance Bill, which outlines the government’s taxation and spending policies for the year beginning July 1. The bill was reviewed clause by clause and ultimately approved in its amended form, as recommended by the Standing Committee on Finance.
Opposition lawmakers proposed deferring the bill for public consultation, but their amendments were overwhelmingly rejected. One of the critical reforms passed included new measures to combat sales tax fraud. These provisions introduce penalties and arrest powers for those issuing fake invoices, tampering with tax records, or providing false information in returns.
Additionally, the bill approved a Rs2.50 per liter carbon levy on petroleum products under clause 3, and imposed a 10% sales tax on solar panels—an effort to balance revenue generation with environmental goals. All opposition amendments to these clauses were dismissed.
Amendments to the Customs Act of 1969 were also passed, making cargo tracking systems mandatory for import, export, and transit goods. Strict penalties were introduced for failing to use electronic billing systems or for interfering with tracking devices.
Income tax reforms were another highlight of the budget. Individuals earning up to Rs600,000 annually will remain tax-exempt, while new progressive slabs have been introduced for higher incomes.
The House also approved changes to the salary determination mechanism for parliamentarians. Going forward, the House Committee will determine MPs’ compensation, with federal and state ministers now receiving pay equivalent to that of MPs.
PPP Chairman Bilawal Bhutto Zardari expressed his support for the budget, praising the government’s inclusion of several PPP recommendations—particularly a 20% increase in allocations for the Benazir Income Support Program (BISP) and partial relief on solar panel taxation.
With the passage of the Finance Bill 2025, the federal budget now officially stands at Rs17.57 trillion. The session was adjourned until 11 AM the following day.
