Cannot Give More Relief to Salaried Class Than We Already Have: Finance Minister

Finance Minister Muhammad Aurangzeb on Wednesday defended the government’s tax enhancement measures in the FY2025-26 budget, particularly tariff reforms aimed at boosting exports. Aurangzeb said the government wanted to give relief to the salaried class, but it could only provide what the fiscal space allowed. He said the government will remove additional customs duty on 4,000 out of 7,000 tariff lines. He said the tax-to-GDP ratio has reached 10.3 percent and is targeted to rise to 10.9 percent in FY26. He stressed the need for legal amendments to plug leakages and avoid further tax measures. Finance Secretary Imdadullah Bosal said the government expenditure has increased by 1.9 percent, which is limited to essential needs only. Aurangzeb said no new taxes have been imposed on agriculture and that small farmers will receive soft loans. On reports of a 10 percent electricity surcharge, FBR Chairman Rashid Mehmood Langrial clarified that no such surcharge has been introduced. Earlier, journalists boycotted the press conference after the government failed to hold a scheduled technical briefing on the Finance Bill. The new federal budget targets 4.2 percent GDP growth, 7.5 percent inflation, a 3.9 percent fiscal deficit (Rs. 5,037 billion), and a 2.4 percent primary surplus.