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PPP Supports Budget After Amendments, Raises Concerns on Key Clauses
PPP voices concerns over budget clauses but backs FY26 budget after govt accepts proposals. Tax relief on solar panels & salaried class, hike in BISP welcomed. 107 institutions granted tax exemptions.
ND
by News Desk
2025-06-26
PPP Supports Budget After Amendments, Raises Concerns on Key Clauses

The Pakistan Peoples Party (PPP) raised strong reservations over controversial provisions in the FY2026 federal budget, but eventually offered full support after the government accepted several of its proposals.

Finance Minister Muhammad Aurangzeb presented and successfully passed amendments to a number of laws, including the Income Tax Ordinance 2001 and Sales Tax Act 1990, while all opposition-proposed amendments were rejected by majority vote in the National Assembly.

The session, which concluded with clause-by-clause approval of the finance bill, was adjourned until 11am Thursday, when the budget is expected to be formally passed.

Bilawal Welcomes Amendments

Addressing the House, PPP Chairman Bilawal Bhutto Zardari confirmed his party would now “happily support the budget,” citing several government concessions, including:

·       An increase in the Benazir Income Support Programme (BISP) budget

·       No income tax for salaried individuals earning up to Rs 1.2 million annually

·       A 50% reduction in the proposed solar panel tax

·       Acceptance of PPP’s recommendations on the FBR

“We are grateful to the government and the Prime Minister for accommodating our demands,” Bilawal said, adding that the party’s earlier opposition stemmed from the lack of inclusivity in the original proposals.

Key Legislative Changes Passed

Among the most notable amendments:

·       Sales Tax Act 1990: The authority to arrest tax fraud suspects (fraud exceeding Rs50 million) shifted from tax commissioners to a finance committee. Arrests will not be permitted during investigation stages.

·       Salaries and Allowances Act: Ministers and ministers of state will now receive salaries equivalent to those of members of parliament.

·       Income Tax Ordinance 2001: 107 entities were granted tax-exempt status, including:

o   Pakistan Bar Council & provincial bar councils

o   Army Welfare Trust & Military Foundation

o   LUMS, GIK University, Forman Christian College

o   Edhi Foundation & Shaukat Khanum Memorial Hospital

o   Al-Shifa Trust & other charitable and public welfare organizations

Pensions of former presidents and their widows were also made tax-exempt.

Federal Budget 2026 Highlights

Earlier this month, Finance Minister Aurangzeb unveiled the FY26 budget with an overall outlay of Rs17.573 trillion, reflecting a 6.9% decrease from the previous year.

Key figures:

·       Current expenditure: Rs16,286 billion (down 5.33%)

·       Targeted GDP growth: 4.2%

·       New tax measures and spending cuts aimed at fiscal consolidation

Despite being marred by political tensions, the budget session saw swift passage of most proposals put forth by the government.
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