Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari announced on Thursday that his party has agreed to support the federal budget after the government accepted key demands, including income tax exemption for salaried individuals earning up to Rs100,000 per month and a reduction in sales tax on solar panels.
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Speaking in the National Assembly, Bilawal stated that the government had agreed to waive income tax on annual earnings of Rs1.2 million, a proposal pushed by the PPP. He also highlighted that the government addressed the party’s concerns regarding the Federal Board of Revenue’s (FBR) arrest powers, limiting them to cases of sales tax forgery and ensuring no arrests at the inquiry stage.
“Tax fraud will now be a bailable offense,” Bilawal said, confirming PPP’s agreement with the revised provisions.
Earlier, the PPP had opposed the Finance Bill over the proposed expansion of FBR’s arrest authority. However, after negotiations with Deputy Prime Minister Ishaq Dar, the party withdrew its objections following the inclusion of additional safeguards in the bill.
Bilawal noted that while the PPP had initially sought a tax exemption for incomes up to Rs1 million, the government extended the threshold to Rs1.2 million. Additionally, the Benazir Income Support Programme (BISP) budget saw a 20% increase, with an allocation of Rs716 billion for the upcoming fiscal year, as demanded by the PPP.
The revised budget proposals mark a compromise between the government and its coalition partners, paving the way for parliamentary approval.
