ISLAMABAD – Finance Minister Muhammad Aurangzeb has made it clear that the upcoming federal budget will not include any tax amnesty schemes. He stated that the era of tax exemptions and reliefs for tax evaders is over, as the government now aims to expand the tax net and improve transparency in the system.
During a recent meeting of parliamentary committees, the government’s proposal to impose a carbon levy on petroleum products was rejected by members, who termed it an unfair burden on the public. However, the committees approved new taxes on high pensions and income earned by international athletes.
The carbon levy sparked intense debate as both the National Assembly and Senate committees began reviewing the Finance Bill clause by clause. Lawmakers questioned whether the levy is a tax, how much revenue it would generate, and how provinces would benefit from it. Some members argued that the move seemed more like revenue collection than an environmental policy.
Opposition leaders, including Sherry Rehman and Shibli Faraz, criticized the proposal, calling it inconsistent with the government’s climate goals. They argued that a carbon tax is internationally accepted, but a carbon levy should be passed through separate legislation, not as part of the Finance Bill. Others warned the move might violate past court rulings.
Meanwhile, the committees approved several other tax measures, including removing tax exemptions for international athletes and high-income pensioners. There was also discussion on reducing sales tax on solar products from 18% to 10%, with further reductions under consideration. The tax on electric vehicles was postponed due to a lack of clear strategy and charging infrastructure.
Finally, FBR admitted that only 35,000 out of 300,000 industrial units are registered for sales tax. Lawmakers raised serious concerns about tax compliance. Proposals included cutting off utilities and freezing bank accounts of non-filers, though some members called for more incentive-based policies rather than strict penalties. The Finance Bill was ultimately deferred to the next session for further review.