Upper House forwards 123 budget recommendations to National Assembly, including support for revised salaried tax rates and higher government salaries
ISLAMABAD: The Senate on Thursday approved a set of recommendations on the Finance Bill 2026 and the federal budget, endorsing the revised income tax slabs for salaried individuals and forwarding a total of 123 proposals to the National Assembly for consideration.
The recommendations were presented before the House by Senator Saleem Mandviwalla, Chairman of the Senate Standing Committee on Finance and Revenue, in the form of a detailed report on the federal budget for the fiscal year 2026-27.
The report was adopted by the Senate during a session chaired by Senate Chairman Syed Yousaf Raza Gilani. Following approval by the Upper House, the recommendations will now be transmitted to the National Assembly as part of the constitutional budget process.
Speaking in the House, Senator Mandviwalla said this was the eighth consecutive budget for which he had presented recommendations as Chairman of the Senate Standing Committee on Finance.
He stressed the need for sustainable economic reforms, stating that Pakistan should avoid repeating policy mistakes made in previous years and focus on measures that could place the economy on a stable and long-term growth trajectory.
Highlighting the committee’s observations, Mandviwalla welcomed the reduction in income tax rates for salaried individuals, saying the revised salary tax slabs would provide relief to the middle-income segment and help ease the burden on taxpayers.
However, he noted that additional efforts were required to promote renewable energy, particularly solar power, and urged the government to introduce further incentives to accelerate the adoption of clean energy solutions.
The senator also recommended abolishing taxes on credit cards and ATM cards, arguing that such charges impose unnecessary costs on consumers and discourage the use of formal banking channels.
According to Mandviwalla, the Senate Standing Committee on Finance submitted 108 recommendations related to the federal budget, while the Senate Standing Committee on Planning contributed another 15 recommendations, bringing the total number of proposals to 123.
Among the key recommendations, the committee proposed a minimum 15 per cent increase in salaries for government employees and called for reductions in taxes on food items and the agriculture sector to provide relief to consumers and support economic activity.
The committee also expressed concern over allocations for health and education, stating that spending on these critical sectors remained insufficient. It further observed that the budget continued to place a heavier burden on existing taxpayers rather than significantly broadening the tax base.
Another important recommendation relates to climate-related taxation. The committee proposed that revenue generated through climate levies should be utilised exclusively for environmental protection, climate adaptation and sustainability projects.
To support education, the Senate also recommended exempting books, notebooks, pencils and other educational materials from taxation, a move aimed at reducing costs for students and families across the country.
Mandviwalla said the committee’s report contained practical and constructive proposals designed to improve the budget and address public concerns regarding taxation, social spending and economic growth.
With the Senate’s approval, the recommendations concerning the Finance Bill 2026 and the federal budget will now be reviewed by the National Assembly, which holds the constitutional authority to make final decisions on budgetary measures before the start of the new fiscal year.
