Govt exempts income tax on annual salary below Rs1.2m

Bilawal says PPP supported budget after all demands accepted

Staff Report
ISLAMABAD
Chairperson of the Pakistan People’s Party Bilawal Bhutto Zardari said on Thursday that his party was wholeheartedly supporting federal budget after the government accepted its demands including to exempt income tax on salaried individuals earning Rs100,000 and reduce sales tax on solar panels.
The income tax on annual income of Rs1.2 million has been exempted on the PPP demand, said Bilawal Bhutto while speaking at the floor of the house.
He further said that the government also agreed to the PPP’s reservations about giving arrest powers to the Federal Board of Revenue.
The government agreed that the arrest powers will only be limited to sales tax forgery and at the inquiry stage no arrest will be made, said Bilawal.
The tax fraud will be a bailable offense, said the PPP chairperson while announcing his party’s agreement with the government on the arrest powers.
Bilawal said that the PPP had demanded that there should be no tax on up to Rs1m income. He said that now we are told that there will be no tax on salary of up to Rs1.2 million per annum.
He said that the government also increased the BISP budget by 20% on the demand of the PPP. The government has allocated Rs716 billion for the BISP for the next fiscal year.
He criticised the Pakistan Tehreek-e-Insaf, saying the party always attempted to reduce funding for the BISP in every budget. On the other hand, Bilawal said, “Prime Minister Shehbaz Sharif increased the BISP allocation in every budget.”
Bilawal added that tax relief has been provided to the salaried class and the government has reduced the solar tax by 50pc on PPP’s recommendation.
He also noted that changes were made to FBR regulations following PPP’s objections.
“We are grateful to PM Shehbaz Sharif and the finance minister for addressing our grievances,” said the PPP co-chairman.
Earlier, the clause-wise approval process of the federal budget 2025-26 commenced in the National Assembly, with the session being chaired by Speaker Sardar Ayaz Sadiq. Prime Minister Shehbaz Sharif was also present in the House.
The passage of the Finance Bill is the final and mandatory step in the federal budget process, enabling the government to implement its financial agenda for the new fiscal year starting July 1.