The Pakistan Peoples Party (PPP) has announced its full support for the federal budget for the upcoming fiscal year 2025-26, following the government’s acceptance of several critical demands put forth by the party.This development solidifies the ruling coalition’s consensus on the budget, paving the way for its smooth passage.
Addressing the floor of the National Assembly on Thursday, PPP Chairperson Bilawal Bhutto Zardari stated that his party was now wholeheartedly backing the budget after significant concessions were made. Key among these demands was the exemption of income tax for salaried individuals earning up to Rs1.2 million annually.
“On PPP’s demand, the income tax on annual income of Rs1.2 million has been exempted,” Bilawal Bhutto confirmed, highlighting a major relief for the salaried class. Initial reports suggested varying thresholds, but the final agreement ensures no tax on annual incomes up to this amount.
Curtailed FBR Arrest Powers and Bailable Offenses
Another significant achievement for the PPP was the government’s agreement to address their reservations regarding the proposed enhanced arrest powers for the Federal Board of Revenue (FBR).
Bilawal Bhutto elaborated that the government assured that FBR’s arrest powers would now be strictly limited to cases of sales tax forgery. Crucially, no arrests will be made at the inquiry stage. Furthermore, the PPP chairperson announced that tax fraud would now be a bailable offense, a significant change from earlier proposals. This move aims to prevent misuse of authority and provide safeguards for taxpayers, a point of contention that had previously led the PPP to harden its stance and refuse to vote on the bill, as reported by The Express Tribune. Deputy Prime Minister Ishaq Dar was instrumental in convincing the PPP to withdraw its objections, assuring that new safeguards had been incorporated into the Finance Act.
Increased Benazir Income Support Programme (BISP) Budget
Furthermore, Bilawal Bhutto Zardari revealed that the government had acceded to the PPP’s demand to increase the budget for the Benazir Income Support Programme (BISP) by 20%. The government has now allocated a substantial Rs716 billion for the BISP for the next fiscal year, aiming to provide enhanced support to deserving families across Pakistan.
The PPP’s announcement of support, following these key concessions, underscores the collaborative nature of the budget-making process within the ruling coalition, aiming to balance fiscal targets with public welfare and parliamentary consensus.
