The Pakistan Peoples Party (PPP) has thrown its weight behind the federal budget for 2025–26 after reaching a critical agreement with the government on tax relief and social support programs.
Speaking in the National Assembly on Thursday, PPP Chairperson Bilawal Bhutto Zardari announced that his party would now support the budget after securing major concessions—foremost among them, an exemption from income tax for individuals earning up to Rs1.2 million annually.
“We initially asked for tax relief on up to Rs1 million in annual salary,” Bilawal said. “Now we’ve been assured that those earning up to Rs1.2 million will pay no income tax.”
Bilawal also confirmed that the government has accepted PPP’s demand to reduce sales tax on solar panels—part of the party’s focus on sustainable development and household affordability.
A particularly contentious issue had been the proposal to grant arrest powers to the Federal Board of Revenue (FBR). The PPP had strongly objected, fearing misuse of authority. Bilawal clarified that the government has now agreed to restrict such powers solely to cases of sales tax forgery. Moreover, no arrests will be made during the inquiry phase, and any charges will be bailable.
Deputy Prime Minister Ishaq Dar is credited with resolving the deadlock. He assured PPP leadership that new safeguards had been written into the Finance Act to address their concerns, as reported by The Express Tribune.
Bilawal also welcomed a 20% increase in funding for the Benazir Income Support Programme, raising the total budget allocation to Rs716 billion—a move he attributed to persistent advocacy by his party.
With these developments, the PPP has formally aligned with the government on the budget, marking a moment of political consensus over key fiscal and social policies.