FY2026-27 Budget: Senate Proposes Increased Income Tax Exemption, Lower Electricity Tariffs

The Senate has adopted several recommendations for the FY2026-27 federal budget, advocating for a higher income tax exemption threshold for low-income individuals and a reduction in electricity tariffs. The proposals, moved by the Senate Standing Committee on Finance and Revenue Chairperson Saleem Mandviwalla, also include increased taxes on luxury assets and expanded social protection programs for vulnerable households. The recommendations will be forwarded to the National Assembly for consideration before the final budget vote. Other suggestions involve reducing GST on essential items, avoiding new taxes on basic necessities, and a transparent roadmap for addressing circular debt.

These recommendations aim to provide financial relief to lower-income citizens and address economic pressures, potentially impacting government revenue and consumer costs.