ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb said on Monday that improvements are being made to tax laws and that an industrial policy will be announced soon.
While wrapping up the debate on the 2025–26 federal budget in the National Assembly, Finance Minister Aurangzeb discussed key economic policies and tax reforms.
During his speech, the opposition created a commotion, tore up copies of the agenda, and protested in front of the speaker. Member of Parliament Iqbal Afridi even got into a scuffle with government members.
Speaking on the occasion, Finance Minister Aurangzeb said that the government has prepared a balanced, inclusive, and people-friendly budget aimed at stabilising the economy, modernising the tax system, and addressing public issues.
He said that tax reforms are being introduced through digitisation, and work is ongoing to improve existing tax laws. The tax burden on salaried individuals has been reduced, with the tax rate on annual income between Rs. 600,000 and Rs. 1.2 million cut to just 1%. Relief has also been proposed for individuals earning up to Rs. 3.2 million annually.
Aurangzeb added that the GST on solar panels has been reduced from 18% to 10% to promote renewable energy. However, he warned that strict action would be taken against those artificially inflating solar panel prices.
He also stated that the FBR’s powers to arrest individuals for tax fraud have been restricted, and now arrests can only be made under three specific conditions. For cases involving less than Rs. 50 million, the FBR will not be allowed to arrest anyone without a warrant. He stressed that public exploitation will not be tolerated.
The FinMin announced that the Benazir Skilled Youth Program will be fully funded to equip youth with employable skills. Loans of up to Rs. 1 million will be provided to small farmers, and a 20-year home loan scheme for small houses will also be introduced.
He further said that government expenditures have been kept under control and that environmental protection measures are being implemented. The recommendations of the National Assembly’s Finance Standing Committee have been included in the budget to ensure public interest is safeguarded through parliamentary consultation.
