The Senate has approved a set of recommendations for the federal budget FY2026-27, calling for relief measures for low-income groups. The proposals include raising the income tax exemption threshold and reducing electricity tariffs. The recommendations aim to ease inflationary pressure on households.
The proposals were presented by the Senate Standing Committee on Finance and Revenue. Chairperson Saleem Mandviwalla moved the motion, which was later adopted by the Upper House. The recommendations will now be sent to the National Assembly for consideration.
Among key suggestions, the Senate urged a reduction in tax rates for salaried individuals affected by inflation. It also called for lower GST on essential goods, including food items, medicines, and education-related materials. Lawmakers stressed the need to avoid new taxes on basic necessities.
In addition, the Senate recommended reforms in the energy sector to reduce electricity bills. It called for a transparent roadmap to cut capacity payments and circular debt. The proposals also included targeted subsidies for low-usage domestic consumers.
The recommendations further urged increased funding for agriculture, health, education, and climate resilience. Lawmakers also suggested simplifying tax procedures for small businesses and improving tax transparency. However, the proposals are not binding on the National Assembly, which will take the final decision on the budget.