- Aurangzeb clarifies FBR not authorized to individuals involved in tax evasion up to Rs50m
- Announces many tax and relief measures incorporated in the budget after suggestions by Parliamentarians
ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Monday, while wrapping up debate on budget, described the budget for fiscal year 2025–26 as a balanced plan focused on providing public relief, promoting industry, curbing government expenditures, enhancing revenues, and ensuring fair tax enforcement—all aimed at fostering sustainable growth and driving an export-led economy.
Speaking on the floor of the National Assembly, the minister announced many tax and relief measures that were incorporated in the budget after suggestions by finance committees of both National Assembly and Senate. He said the government was committed to economic stability amid regional uncertainty.
Aurangzeb stated that the Federal Board of Revenue (FBR) would not be authorized to arrest individuals involved in tax evasion of up to Rs50 million without judicial warrants.
The finance minister emphasized this approach is in line with the government’s commitment to upholding due process and judicial oversight.
He further assured that a three-member FBR committee would be formed to investigate cases of tax evasion. Tax evaders, once identified, would be presented before a magistrate within 24 hours, ensuring swift legal proceedings.
The Finance Minister also highlighted that the government would soon unveil its industrial policy to stimulate economic growth. He described the upcoming fiscal year’s budget (2025-26) as “balanced” and noted that significant steps had been taken to ease the financial burden on the salaried class, including reduced taxes.
Additionally, the government is focusing on improving tax rules, with particular emphasis on expanding the tax base. Aurangzeb announced that efforts are underway to grant loans to farmers on easy terms and conditions, alongside measures to boost exports and address environmental concerns.
The minister also addressed the issue of rising solar panel prices, noting a slight increase in rates but a reduction in the sales tax on imported solar panels from 18% to 10%. He further elaborated on the steps being taken to expand the tax base, including introducing digitalization in tax collection processes and the implementation of new laws to ensure better tax compliance.
As part of the government’s fiscal measures, Aurangzeb said that a Federal Excise Duty (FED) of Rs10 has been imposed on one-day-old chicken, and rates on investment in mutual funds and earnings from government securities have been revised.
In addition, the Finance Minister revealed that the budget allocation for the Benazir Income Support Programme (BISP) has been increased from Rs592 billion to Rs716 billion to support vulnerable populations. He also mentioned the introduction of Pakistan’s first Skills Impact Bond aimed at providing market-oriented skills to the youth.
Aurangzeb highlighted that the government is facilitating the construction industry, reducing import duties to lower the cost of industrial inputs, and curbing smuggling to support industrial growth.
Moreover, the government is introducing a program to provide loans to small farmers without the need for guarantees, offering up to Rs1 million for farmers with less than 12.5 acres of land. The loans will be disbursed digitally, and the farmers will also receive crop and life insurance benefits.
He concluded by stating that the government’s focus remains on increasing revenue, improving economic stability, and enhancing the welfare of the people through comprehensive reforms.
