Pakistan Peoples Party (PPP) Chairperson Bilawal Bhutto Zardari announced on Thursday that salaried individuals earning up to Rs. 100,000 per month will be exempted from income tax, following successful negotiations with the federal government.
Speaking in the National Assembly, Bilawal stated that the exemption—covering annual incomes up to Rs. 1.2 million—was among the key conditions put forward by the PPP for supporting the budget. “We demanded that there should be no tax on income up to Rs. 1 million, but now we are told the exemption has been extended to Rs. 1.2 million,” he said.
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Bilawal also revealed that the government accepted PPP’s concerns over proposed arrest powers for the Federal Board of Revenue (FBR). The revised agreement limits such powers strictly to sales tax forgery cases, and arrests cannot be made at the inquiry stage. Additionally, any arrest will now be for a bailable offense.
The PPP had initially declined to support the finance bill over this clause, but Deputy Prime Minister Ishaq Dar assured the party that safeguards would be added to address their concerns.
The government also accepted PPP’s demand to reduce sales tax on solar panels and agreed to increase the Benazir Income Support Programme (BISP) budget by 20%.
