Glaring Errors Uncovered in Government’s Proposed Finance Bill 2025-26 - Bio Points News

ISLAMABAD – June 13, 2025:
Just days after Finance Minister Muhammad Aurangzeb unveiled the federal budget for the fiscal year 2025-26, glaring mistakes have surfaced in the proposed Finance Bill, triggering widespread criticism and demands for immediate corrections.

One of the most striking errors is the bill’s reference to the Aviation Policy of 2015, despite the fact that the Aviation Policy of 2023 is the current regulatory framework in effect. Experts have termed this an "embarrassing oversight" that reflects poorly on the document’s accuracy and credibility.

Tax Exemptions Raise Equity Concerns

Another controversial proposal in the Finance Bill involves granting tax exemptions on the import or lease of aircraft to Pakistan International Airlines Corporation Limited (PIACL). This has raised multiple questions:

• What happens to these exemptions if PIA is privatised?

• Why aren’t other domestic airlines being offered the same benefits?

Aviation sector stakeholders have argued that such selective relief undermines the principle of equal treatment under the law and may distort market competition.

GST Confusion on Aircraft Leasing

Further ambiguity surrounds the general sales tax (GST) on aircraft leases. The bill does not clearly explain how GST would be applied or exempted, creating confusion for the aviation industry and legal experts alike.

Pension Tax Clause Already Under Fire

Earlier, a clause in the same bill sparked outrage by suggesting that pensioners could be taxed, a proposal that was quickly walked back by the Federal Board of Revenue (FBR). Senior officials acknowledged it was an unintended clause, promising it would be corrected before the bill’s final approval.

Legal Misunderstandings in the Text

In addition to outdated policy references, the bill erroneously mentions the “registration” of airlines, a term not recognized under current aviation law. As per the Civil Aviation Act 2023, airlines are required to obtain licensing and operational certification, not registration. Legal analysts are calling for urgent amendments to ensure the document aligns with existing laws.

Budget Highlights and Figures

Despite the bill’s shortcomings, the overall Rs17.57 trillion budget outlines major financial targets:

• 10% increase in government salaries

• 7% rise in pensions

• GDP growth target of 4.2%

• FBR tax collection target: Rs14,131 billion (18.7% increase)

• Non-tax revenue target: Rs5,147 billion

• Debt servicing: Rs8,207 billion

Rectification Underway

In response to growing backlash, the FBR has announced the formation of anomaly committees to address errors and discrepancies in the proposed legislation. These committees will review the bill and recommend corrections before parliamentary approval.

“It’s imperative that these oversights are fixed quickly to avoid legal confusion and unfair advantages,” commented a senior economist.

With the Finance Bill 2025-26 still under parliamentary review, the pressure is mounting on the government to fix the loopholes and ensure that the final law is fair, current, and legally sound.