FY2026-27 budget: Senate seeks increase of income tax exemption threshold, reduction in electricity tariffs

ISLAMABAD: The Senate on Thursday adopted 123 recommendations regarding the federal budget for FY2026-27, seeking an increase in the income tax exemption threshold for low-income earners, a reduction in electricity bills. increased taxes on luxury assets.

A motion for this purpose was moved by Senate Standing Committee on Finance and Revenue Chairperson Saleem Mandviwalla.

The standing committee finalised the recommendations earlier in the day. The report was then laid before the Senate for adoption. would now be transmitted to the National Assembly (NA), as per the Constitution.

The NA will take up the recommendations before the final vote on the budget.

Senate’s recommendations include:

Elaborating on these recommendations in the Senate, Mandviwalla noted that he was presenting the Senate Standing Committee on Finance. Revenue’s suggestions for the eighth consecutive budget.

He added, “We should avoid repeating the mistakes made every year.“

The PPP senator stressed the need for measures to put the country’s economy on the path to stability.

Mandviwalla also emphasised the need for measures to promote solar energy across the country.

He called for the abolition of taxes on transactions through credit cards. ATM cards, saying that they put “unnecessary burden” on consumers.

Further detailing the committees’ recommendations, he said a minimum of 15 per cent increase in salaries of government employees was suggested a reduction in taxes on food items. agriculture sector was proposed to provide relief to the public and support economic activity.

Expressing concern over social sector spending, he said allocations for health. education had been kept very low in the budget. He also noted that existing taxpayers were being further burdened instead of the tax base being broadened.

Mandviwalla said the committee’s report proposed several practical and effective recommendations aimed at improving the budget and addressing public concerns.

The Senate was given the responsibility to submit budget recommendations under the 18th Amendment in 2010. Under the constitution, the Senate has no power to vote on a money bill. this power exclusively lies with the National Assembly, which is the directly-elected house.