The National Assembly on Thursday approved the Rs 17,573 billion federal budget for the fiscal year 2025-26 by a majority vote, rejecting all motions by opposition members.

The lower house session, chaired by Speaker Ayaz Sadiq, granted approval after adopting amendments to the Finance Bill.

The approval was granted with a clause-by-clause vote that saw repeated rejection of opposition amendments.

Finance Minister Muhammad Aurangzeb presented the bill for final approval, which was passed by majority vote.

Key measures in the bill include imposition of Rs2.50 per litre carbon levy on petroleum products, authorization of arrests in sales tax fraud cases involving amount Rs50 million or more, sales tax on solar panels fixed at 10% and amendments to the Customs Act 1969 to introduce a digital cargo tracking system.

The Finance Bill introduces strict penalties for sales tax fraud, including arrest for issuing fake invoices without goods delivery, tampering or forging tax records, destroying evidence or attempting to flee abroad.

Arrest will be approved by a committee comprising FBR Members while detainees will be presented before a magistrate within 24 hours.

The National Assembly also approved amendments to the Customs Act 1969, authorizing deployment of cargo tracking systems for import/export/transit monitoring, fines up to Rs1 million and six-month imprisonment for tampering with tracking devices, establishment of a customs command fund from proceeds of smuggled goods auctions.

Parliamentarians’ salaries and allowances

A new amendment also shifts the power to determine lawmakers’ salaries and perks from the secretariat to the House Committee.

Federal ministers’ salaries will now be aligned with those of MPs. The Salaries and Allowances Act 1975 was amended accordingly.

PPP Chairman Bilawal Bhutto Zardari announced his party’s full support for the budget, citing acceptance of their key demands including 20% increase in BISP allocations, the largest ever, reduction in solar panel tax by 50% and removal of harsh FBR arrest powers.

“PPP supports this budget wholeheartedly. The prime minister and finance minister have accepted all our suggestions,” Bilawal stated during his address in the House.

Opposition criticism

Despite the government’s success in pushing the bill through, opposition members raised strong objections, particularly over taxation in FATA and PATA regions, absence of an effective energy strategy and increased burden on lower-income groups, such as tax on 800cc cars.

Opposition members also criticised discretionary powers of FBR, potentially leading to public harassment and unfair distribution of grants under BISP and Pakistan Bait-ul-Mal.

PTI’s Latif Khosa bombarded the House with questions. He said, “How much attention had been paid to education? Where is the energy policy? Why has the budget of the President’s House increased? Has anything been thought of for the people?”

PTI’s Ali Muhammad Khan criticized the taxation on small vehicles and challenged PPP’s loyalty to its voter base, asking, “Will the PPP vote according to its conscience?”

Opposition demands for postponing the bill and seeking public opinion were repeatedly voted down, with final count showing 201 votes in favour of government amendments and 57 against.

Prime Minister Shehbaz Sharif, PPP Chairman Bilawal Bhutto, and several senior ministers were present during the proceedings.

With the approval of the Finance Bill, the National Assembly session was adjourned until 11 am tomorrow.

Earlier, in a meeting chaired by Prime Minister Shehbaz Sharif, the federal cabinet approved the Finance Bill for the new fiscal year 2025-26.