ISLAMABAD (PEN) : Federal Finance Minister Muhammad Aurangzeb announced a series of key reforms during the conclusion of the budget debate in the National Assembly, highlighting the government’s focus on improving tax laws, reducing the burden on salaried individuals, and supporting youth and farmers through development programs.
Major Tax Reforms Introduced
Aurangzeb said the 2025–26 federal budget introduces a “balanced, inclusive, and people-friendly” financial framework, aiming to modernize the economy and simplify the tax system through *digitization and legislative improvements.
Among the notable tax measures, the *income tax rate for individuals earning between Rs. 600,000 and Rs. 1.2 million annually has been reduced to 1%, offering relief to the salaried class. Additional concessions have been proposed for those with annual incomes up to Rs. 3.2 million.
He also confirmed a reduction in General Sales Tax (GST) on solar panels from 18% to 10%, a move aimed at encouraging the adoption of renewable energy. However, the minister cautioned that *“strict action will be taken” against vendors found inflating solar equipment prices.
FBR Powers Curtailed
The finance minister disclosed that the powers of the *Federal Board of Revenue (FBR)* to arrest individuals for tax-related offenses have been significantly restricted. Arrests can now only occur under *three defined conditions, and no arrest can be made without a warrant* for tax evasion cases involving less than *Rs. 50 million.
“The public will not be exploited under the guise of enforcement,” Aurangzeb assured.
Youth and Agriculture Support
The *Benazir Skilled Youth Program* will receive full funding in the upcoming fiscal year, with the goal of equipping young people with market-relevant skills. Additionally, *loans of up to Rs. 1 million will be offered to small-scale farmers, while a **20-year housing loan scheme* is set to provide affordable homes for low-income families.
Budget Backed by Consultation
Aurangzeb noted that the budget includes inputs from the *National Assembly’s Finance Standing Committee, emphasizing transparency and **parliamentary oversight* in safeguarding public interest. He also highlighted that *government spending has been kept under control, and steps are being taken to advance **environmental protection*.
Opposition Disruption
The budget session was marked by disorder, with opposition members protesting vocally, tearing up agenda copies, and engaging in heated exchanges. One Member of Parliament, *Iqbal Afridi*, was involved in a brief scuffle during the proceedings.