• Senate, National Assembly panels oppose carbon levy, term it undue burden on public
• Approve new taxes on high-value pensions, athletes
• Govt asked to reveal terms of IMF’s resilience facility

ISLAMABAD: The parliamentary committees on Thursday rejected the government’s proposal to impose a carbon levy on petroleum products, terming it an undue burden on the public, whereas the finance minister stressed that “the era of tax exemptions and amnesty schemes is over”.

However, they approved new taxes on high-value pensions and the income of international athletes.

The carbon levy became a focal point as the Senate and National Assembly Standing Committees on Finance and Revenue held simultaneous sessions at Parliament House for a clause-by-clause review of the Finance Bill 2025-26.

Chaired by Senator Saleem Mandviwalla and MNA Naveed Qamar, respectively, both panels proposed several amendments and struck down a number of measures. The Senate concluded its deliberations on the proposed tax provisions on Thursday.

The debate revolved around whether the measure should be classified as a levy or a tax, its revenue potential and provincial share, and whether its purpose is genuinely another tool for the federal government to raise additional funds.

Senator Sherry Rehman firmly distinguished bet­w­een fiscal instruments, stating there is a significant diff­erence between a carbon levy and a carbon tax. Carbon levies are not stan­dard practice, she said, add­ing that it is carbon taxes that are typically imposed.

She argued that such a measure cannot be introduced through the Finance Bill, calling instead for dedicated legislation.

Senator Shibli Faraz criticised the move as contradictory. “On........

© Dawn Business