Key commendations bypassed

THE National Assembly passed a Rs. 18.8 trillion budget for the financial year 2026-27, which envisages Rs. 15.3 trillion tax target. The House also approved the Finance Bill 2026 with several amendments, authorizing the government to implement over Rs.1 trillion in policy and enforcement measures in an effort to meet the ambitious tax collection target. The way the Government almost totally ignored recommendations and suggestions made by the Upper House of the Parliament and Members of the National Assembly during, otherwise, exhaustive debate on the budgetary proposals for the next year confirms once again that the elected representatives have no major say in budget formulation and finalization. The Senate has no role in the passage of the budget but there is no denying the fact that its members worked hard to give worthwhile input to the lower house and incorporation of its main recommendations would have made the document reflective of the aspirations of the people. Regrettably, the authorities concerned either ignored or modified key recommendations of the Senate especially those concerning tax exemptions and salary increase. The only worthwhile amendment incorporated in the Finance Bill was lowering of the tax on imported mobile phones of up to Rs.55,600 or $200 value only. The measure is appreciable but not enough as there is legitimate demand for high end phone sets particularly in view of imminent introduction of 5G service by telecom operators. The Government employees and pensioners have been given a lollipop of 10% and 7% increase respectively in pays and pensions in the backdrop of sharp rise in price-hike. The decision-makers cite resource constraints but such claims are negated by the fact that import duties on a number of items including second hand cars have been reduced under pressure of the International Monetary Fund (IMF), a decision that runs contrary to the objective of increasing tax collection. The Government claims the new budget was aimed