ISLAMABAD: The National Assembly on Thursday okayed the federal budget for the upcoming fiscal year 2025-26 with a majority of votes, granting clause-by-clause approval to the Finance Bill 2025, ARY News reported.
Finance Minister Muhammad Aurangzeb presented the finance bill in the lower house, where it received backing from the ruling coalition, including the Pakistan Peoples Party (PPP).
The motion was passed with a majority vote which led to the passage of Finance Bill 2025 after clause-by-clause reading and adopting amendments after due process of voting.
During the proceedings, all amendments and cut motions presented by opposition were rejected.
The total budget volume stands at over Rs17.57 trillion, with estimated total revenue set at Rs19,400 billion.
The PPP also supported after the government issued the Bilawal Bhutto Zaradri-led party’s reservations, reducing the tax on solar panel to 10 percent. The Benazir Income Support Programme (BISP) budget has been increased by 20% following the PPP’s demand.
Meanwhile, the federal government also introduced what it called a ‘relief’ for the salaried individuals. According to the Finance Bill, individuals earning up to Rs600,000 annually will be completely exempt from income tax in the budget 2025-26.
In the second slab, those earning between Rs600,001 and Rs1.2 million per annum will pay 1% income tax on the amount exceeding Rs600,000.
In the third slab, individuals with annual incomes between Rs1.2 million and Rs2.2 million will be subject to a fixed tax of Rs6,000 plus 11% tax on the amount exceeding Rs12 million.
Read more: Gohar urges tax relief to salaried class for up to 2.2 m annual income
For the fourth slab (Rs2.2 million to Rs3.2 million), a fixed tax of Rs116,000 will apply along with 23% tax on the amount above Rs2.2 million.
In the fifth slab, for annual incomes between Rs3.2 million and Rs4.1 million, the proposed tax includes a fixed amount of Rs346,000 and 30% tax on the amount exceeding Rs3.2 million.
The sixth slab covers individuals earning above Rs4.1 million annually, who will be required to pay a fixed tax of Rs616,000 plus 35% income tax on the amount exceeding Rs4.1 million.
