Budget taxation & relief measures: Govt refuses to share revenue impact figures with NA panel

ISLAMABAD: The federal government Monday categorically refused to share revenue impact of taxation and relief measures taken in budget (2026-27) with the members of the National Assembly Standing Committee on Finance.

The tax relief provided to the salaried class, including the abolition and gradual reduction of super tax, as well as a slashing of tax rates for exporters and real estate transactions, is expected to have a revenue impact of approximately Rs 360 billion for the next fiscal year.

When MNA Sharmila Farooqi and Hina Rabbani Khar, belonging to PPP, insisted upon for sharing the exact revenue impact and inquired whether it stood at Rs 360 billion, the Chairman of the NA Panel on Finance said that it seemed quite close to the figure shared by the government with him on the pretext that it would not be shared publicly when the media is covering the proceedings of the committee.

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Secretary, Ministry of Finance informed National Assembly Standing Committee on Finance that the revenue impact of the relief measures has been shared with the Chairman of committee Syed Naveed Qamar. The committee members can directly obtain figures of revenue impact from the Chairman of the NA Finance Committee. The numbers cannot be shared publicly. However, the committee can arrange an in-camera briefing on the revenue impact for the members of the committee, he added.

Finance Secretary further informed the committee that the government cannot disclose the total amount of relief figures at this stage.

The committee member MNA Hina Rabbani Khar criticized the government’s position, saying it should clearly state if it did not want to provide details to the committee.

The issue came to the light when committee members inquired about the revenue impact of relief measures from officials of the Federal Board of Revenue (FBR) and Ministry of Finance.

Both the Ministry of Finance and senior officials of the FBR were not ready to share the revenue impact chart of relief and policy measures taken in budget (2026-27).

During a presentation on Finance Bill 2026, a senior FBR official informed the committee about the relief provided to the salaried class in budget (2026-27).

The committee members asked about the exact revenue impact of the relief provided to the salaried class.

The FBR official informed that the government has taken 11 relief measures, 10 tax rationalization measures and five administrative measures through Finance Bill 2026.

The FBR official responded that the numbers have been estimated based on last year’s contribution of salaried class. We assumed that the last year tax relief of Rs 57 billion would be provided to the salaried individuals, but the actual figure of collection was much higher at Rs 625 billion against the estimated amount of Rs 500 billion. Similarly, this year a tax relief of around Rs 55 billion has been estimated for the salaried class, but the figures are merely based on assumptions.

When the FBR official shared the revenue impact of proposed relief provided to the salaried class for 2026-27, Naveed Qamar pointed out that the FBR is the custodian of the revenue impact figures.

MNA Hina Rabbani Khar stated that the government can simply refuse to share numbers with us, but do not divert discussion by saying that figures are based on assumptions. The annual budget estimates are always based on last year data, economic indicators, figures and assumptions, she added.

Chairman of committee Syed Naveed Qamar intervened that the revenue impact of the tax relief measures is very big. However, the government is still in the process of negotiations with the International Monetary Fund (IMF). “I have the numbers, but they (government functionaries) are still in the process of negotiations”, Qamar added.

Syed Naveed Qamar said that the government has negotiated with the IMF in total isolation. You (government) came here to the committee after finalizing terms and conditions with the fund. If you involve finance committee members, it will ease the government position keeping in view public interest. “Do not isolate yourself”, Chairman of committee remarked.

Other committee members stated that they have the right to know about the revenue impact of relief provided to the general masses and even the public needs to know about these numbers, they added.

Copyright Business Recorder, 2026