ISLAMABAD: The National Assembly on Saturday turned what were meant to be advisory Senate budget recommendations into a full-scale political confrontation, with sharp disagreements emerging over taxation policy, fiscal relief, and the direction of institutional reforms. Although the Senate’s 140 recommendations on the federal budget for 2026-27 carry no binding force under the 18th Constitutional Amendment, lawmakers from both the government and opposition transformed the discussion into an extended political exchange over economic policy, governance priorities, and constitutional interpretation. READ ALSO: Tax relief for salaried class is inadequate: Ejaz A key point of contention was taxation policy, particularly on tobacco, consumer goods, and regulatory levies. Opposition lawmakers from the Pakistan Tehreek-e-Insaf (PTI) argued that tobacco should be classified as an agricultural commodity and taxed only at the finished-product stage. PTI’s Asad Qaiser maintained that provincial classifications, particularly in Khyber Pakhtunkhwa, recognise tobacco as an agricultural product, and urged the federal government to shift taxation towards cigarette manufacturers rather than farmers. Other lawmakers supported higher taxation on cigarettes while opposing levies on growers. Concerns were also raised over selective fiscal concessions. Muhammad Atif of PTI opposed sales tax relief for Pakistan International Airlines (PIA), arguing that incentives should be applied uniformly across sectors instead of being limited to specific services. Calls for economic relief dominated several speeches, with Naima Kishwar of JUI-F demanding a 15 percent salary increase for government employees, criticising the prolonged inactivity of the Provincial Finance Commission (PFC), and backing higher cigarette taxation alongside relief for salaried workers. Aamir Dogar of PTI presented a broader set of proposals linked to Senate recommendations, including reducing the petroleum levy from Rs123, cutting telecom advance tax from 15 to 8 per cent, and restoring tax exemptions for university faculty and pensioners. He also called for the removal of agriculture-related taxes and advocated increased funding for major infrastructure and energy projects, including the Karachi-Hyderabad Motorway and the Iran-Pakistan gas pipeline. Beyond fiscal measures, opposition lawmakers also raised objections to pending legislation, with Amir Dogar again describing the Pakistan Telecommunication (Re-organisation) (Amendment) Bill 2026 as “draconian”, questioning its regulatory scope and implications for telecom firms acquiring property. Umair Niazi of PTI emphasised the need to respect provincial autonomy, warning against provisions perceived to favour specific commercial interests, including proposed adjustments to taxes on battery imports. The debate broadened into governance and structural reforms, with Barrister Gohar Ali Khan of PTI calling for the establishment of a climate fund, arguing that provinces lack the capacity to independently cope with large-scale natural disasters without federal co-ordination. Another PTI lawmaker, Ali Muhammad Khan, criticised the country’s continued reliance on an interest-based financial system, arguing that constitutional provisions mandate its elimination by 2028, and questioning the state’s lack of progress towards that deadline. Responding to opposition criticism, State Minister for Law and Justice Barrister Aqeel Malik rejected allegations of bias in federal resource distribution. He cited Article 68 of the Constitution, which restricts discussion on sub judice matters, and referenced ongoing cases including the Al-Qadir Trust and the £190 million case. He also outlined judicial and administrative reforms, including more than 60 proposed amendments to the Code of Criminal Procedure, along with digital initiatives such as e-filing and e-appeals, which he said had received international recognition. He further highlighted reforms in elections, judicial appointments, prison systems, and detainee healthcare, calling for cross-party consensus on institutional change. Parliamentary Affairs Minister Tariq Fazal Chaudhry said opposition PTI lawmakers speeches largely centred on grievances related to former Prime Minister Imran Khan, while defending the government’s record on institutional reforms. He said the government had restored Parliament’s authority over judicial appointments, claiming the opposition’s only grievance was the absence of judges who made deferential remarks such as “good to see you”, and urged opposition members to play their part in strengthening Parliament. He also referred to geopolitical developments, including last year’s Operation Bunyaan-un-Marsoos involving India and Pakistan’s recent role as a mediator in the US-Iran peace agreement, arguing that these underscored Pakistan’s strategic importance as a nuclear-armed state. He added that over 4, 000 military personnel had been martyred in recent years and pointed to reforms such as cabinet downsising, changes in ministerial appointment rules, and withdrawal of 177 terrorism FIRs. He reiterated that political dialogue remained the only viable path forward and urged the opposition to engage constructively within Parliament. Copyright Business Recorder, 2026



