ISLAMABAD – National Assembly on Thursday approved Rs 17.57 trillion federal budget for fiscal year 2025–26, passing the Finance Bill by majority vote despite strong opposition. The budget includes a Rs 2.50 per litre carbon levy on petroleum, a 10% sales tax on solar panels, and expanded powers for the FBR to arrest individuals involved in tax fraud over Rs 50 million.
Amendments to the Customs Act introduce a digital cargo tracking system and penalties for tampering with tracking devices. Parliament also shifted authority over lawmakers’ salaries to the House Committee.
PPP supported budget after securing key demands, including a 20% increase in BISP funds and reduced taxes on solar panels. Opposition parties criticized the budget for targeting low-income groups and granting excessive powers to the FBR.
Among the major initiatives, the government has imposed a Rs 2.50 per litre carbon levy on fuel and introduced a fixed 10% sales tax on solar panels. A significant focus has been placed on tackling sales tax fraud, with the law now allowing arrests in cases involving amounts of Rs 50 million or more. Such arrests must be approved by a Federal Board of Revenue (FBR) committee, and detainees must be presented before a magistrate within 24 hours.
The Customs Act 1969 has also been amended to include digital cargo tracking for imports, exports, and transit goods. Penalties for tampering with tracking devices now include fines up to Rs 1 million and up to six months in jail. Additionally, a Customs Command Fund will be created from the proceeds of smuggled goods sold at auction.
Despite the smooth passage of the bill, opposition members voiced sharp criticism over various aspects of the budget. Lawmakers from the Pakistan Tehreek-e-Insaf (PTI) and other opposition parties condemned the extension of taxes to the tribal regions (FATA and PATA), the absence of a robust energy policy, and increased taxes affecting low-income citizens—such as those on 800cc vehicles.
Opposition motions calling for a delay in the budget’s passage and for wider public consultation were repeatedly defeated. In the final tally, 201 members voted in favour of the Finance Bill, while 57 voted against.
The session concluded with the formal approval of the Finance Bill. Prime Minister Shehbaz Sharif, Bilawal Bhutto, and senior ministers were present in the chamber during the vote. Earlier in the day, the federal cabinet had given its go-ahead to the budget in a meeting chaired by the prime minister.
