Senate adopts 123 budget recommendations for FY2026-27

ISLAMABAD: The Senate on Thursday approved 123 recommendations on the federal budget for FY2026-27, including proposals to raise the income tax exemption threshold for low-income earners, cut electricity costs and increase taxation on luxury assets.

The recommendations were moved through a motion by Senate Standing Committee on Finance and Revenue Chairperson Saleem Mandviwalla after the committee finalised its report earlier in the day. The report was then placed before the upper house for adoption.

Among the measures endorsed by the Senate were lower tax rates for salaried individuals affected by inflation, expansion of targeted social protection programmes for vulnerable households and a reduction in general sales tax on solar panels. The recommendations also called for steps aimed at easing the burden on consumers through lower power bills.

Under the Constitution, the adopted recommendations will now be sent to the National Assembly, which is due to consider them before the final vote on the budget. The Senate’s proposals, however, are not binding on the lower house.