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Aftab Maken
ISLAMABAD: On Monday, Finance Minister Muhammad Aurangzeb wrapped up the debate on the upcoming fiscal year’s budget during a session of the National Assembly. In his speech, he highlighted the government’s economic direction, key tax reforms, and public welfare initiatives.
Aurangzeb told the House that the government has presented a balanced and people-friendly budget focused on economic stability, modernizing the tax system, and addressing the real issues faced by the public. He said that digitalization is at the core of the government’s tax reform efforts, and work is ongoing to improve existing tax laws.
One of the major relief measures announced was the reduction of the tax burden on salaried individuals. The finance minister said that annual incomes between Rs 600,000 and Rs 1.2 million would now be taxed at just 1%. He added that those earning up to Rs 3.2 million annually would also benefit from proposed tax reliefs.
Aurangzeb also addressed the high cost of renewable energy equipment. He announced that the General Sales Tax (GST) on solar panels had been reduced from 18% to 10% to encourage the use of clean energy. However, he warned traders and suppliers not to increase prices arbitrarily. “The government has taken a step to make solar energy affordable. Any artificial price hike will be dealt with strictly,” he cautioned.
The finance minister further revealed that e-commerce businesses would now be brought into the tax net, but only large enterprises would be affected. Small online businesses would face only a minimal tax rate, ensuring they are not burdened.
He also discussed reforms in the powers of the Federal Board of Revenue (FBR). The authority to arrest individuals over tax fraud has now been limited. Arrests can only be made if three specific conditions are met, providing protection against misuse.
Highlighting government initiatives for youth and farmers, Aurangzeb said the Benazir Skills Development Program will receive full funding to help young people acquire employable skills. He also announced that small farmers would be eligible for loans of up to Rs 1 million, while a new 20-year housing loan scheme is being introduced to support low-income families.
He stressed that the government is focused on controlling public spending and has included environmental protection measures in the budget. Aurangzeb added that the proposals of the National Assembly’s Standing Committee on Finance have been incorporated into the final budget document, reflecting a participatory and transparent process. The finance minister concluded by saying that the budget is not just about numbers, but about supporting people, strengthening institutions, and building a stronger, more resilient economy.
