Islamabad( The COW News Digital ) Pakistan’s Finance Minister Muhammad Aurangzeb announced major tax reliefs and reforms while wrapping up the federal budget debate in the National Assembly, emphasizing that homes under residential use for over 15 years will be exempt from withholding tax.
During his concluding budget speech, opposition lawmakers, particularly from Pakistan Tehreek-e-Insaf (PTI), launched a protest, with MNA Iqbal Afridi reportedly attempting a physical confrontation with treasury members. Assembly security intervened to diffuse the situation.
Despite disruptions, Minister Aurangzeb outlined key amendments aimed at easing the burden on middle- and lower-income groups while expanding the tax net for high earners. One of the notable reforms is that the Federal Board of Revenue (FBR) will no longer be allowed to arrest individuals accused of tax fraud under Rs. 50 million without prior approval from a special committee. Additionally, any such individual must be produced in court within 24 hours.
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In a landmark step, the government has imposed a tax on agricultural income exceeding Rs. 10 million per year. This move is being viewed as a long-overdue effort to bring large-scale agricultural producers into the formal tax net. For the salaried class, income between Rs. 600,000 and Rs. 1.2 million will now be taxed at a reduced rate of 1%, down from the previous 5%.
The Benazir Income Support Program (BISP), Pakistan’s flagship social safety net, has received a 20% increase in funding, reflecting the government’s commitment to support vulnerable populations amid economic stress.
Additional measures announced include a reduction in the tax on solar panel imports from 18% to 10%, aimed at encouraging renewable energy use in the wake of persistent power shortages and rising fuel costs. Furthermore, tax on cotton has been completely abolished to boost the textile sector.
The finance minister also highlighted efforts to stimulate private sector growth, with reduced regulatory hurdles and targeted support for small businesses. However, a controversial new measure imposes a Rs. 10 tax per chick in the poultry sector — a move that may impact poultry prices and has already drawn criticism from some stakeholders.
Aurangzeb reaffirmed the government’s focus on balancing economic stabilization with inclusive growth, stating, “These reforms are a step toward fiscal responsibility and social justice.”
