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• Change offsets additional fiscal impact from increased govt salaries
• Aurangzeb defends steep pay hikes for lawmakers, ministers
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• Contributory pension scheme for forces personnel may face delays

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday repeatedly warned that the government would be compelled to impose a further Rs400 to 500 billion in taxes if parliamentarians failed to approve the sweeping enforcement measures proposed in the 2025-26 budget — as they were already cleared by the International Monetary Fund (IMF).

“I now request my colleagues in both houses of parliament to get the enabling clauses for enforcement measures passed, otherwise we would have to take Rs400-500bn additional tax measures,” the usually soft-spoken minister said at his post-budget press conference, hinting at potential resistance within the ruling party, coalition partners and other pressure groups.

While Mr Aurangzeb did not name specific provisions, he was apparently referring to expanded enforcement powers for the Federal Board of Revenue (FBR). These include the authority to block high-value financial transactions by non-filers — such as vehicle and property purchases, investment in securities and mutual funds, and opening certain prestigious bank accounts — along with powers to seal unregistered business premises, confiscate goods and recover taxes from firms, including those in the public sector.

At a recent special meeting, the National Assembly’s Standing Committee on Finance and Revenue raised objections to some of those measures introduced through the Tax Laws (Amendment) Ordinance 2025 last month and hinted at tight scrutiny in due course. “Legal backing will be critical to institutionalise compliance and sustaining revenue growth,” the finance minister asserted.

Mr Aurangzeb explained that of the Rs700bn additional revenues envisaged for the next fiscal year — on top of an estimated 12 per cent organic growth in taxes driven by inflation and economic activity —........

© Dawn Business