No new taxes in upcoming budget, says Mujtaba

LAHORE:The Punjab government has aimed to present a balance budget without imposing any new taxes in the fiscal year 2025-26 while the focus would be on efficient tax collection.

This was discussed in the maiden meeting of the Resource Mobilisation Committee (RMC) for the fiscal year 2025–26 held here at the Civil Secretariat under the chairmanship of Punjab Finance Minister Mujtaba Shuja-ur-Rehman.

The meeting was attended by Minister for Communication and Law Sohaib Ahmad Bharath, Minister for Transport Bilal Akbar Khan, and senior officials from the Punjab Revenue Authority (PRA), Excise and Taxation Department, and Board of Revenue. The meeting focused on reviewing existing revenue streams and exploring new avenues to enhance provincial resources in preparation for the upcoming budget. The finance minister reiterated the government's commitment to public relief and said that the government aimed to present a balanced budget without imposing new taxes. ‘Our focus is on improving the collection of existing levies while protecting small businesses from undue pressure. Major defaulters should be the priority for recovery efforts.’ He emphasised curbing narcotics by discouraging manufacturers and distributors, and termed the transition in property tax valuation a beneficial reform for both government and taxpayers. ‘The phased implementation of tax reforms is providing real relief to the people of Punjab,’ he added. During the meeting, DG Excise & Taxation Umar Sher Chattha briefed the committee that the department had achieved 75 percent revenue collection target by March 2025 and collected Rs42.685 billion. He added that March alone witnessed a 27 percent increase in revenue growth compared to the same period last year, attributed to improved performance and policy reforms. The transition from Annual Rental Value to Capital Value for property tax assessment has also proven instrumental in boosting revenue.

PRA chairman informed the committee that the authority had registered a 14 percent growth this year, collecting over Rs190 billion till March 2025. He highlighted the establishment of 15 new regional offices and the full-scale implementation of the Internal Revenue Information System (IRIS), modeled after the FBR. Additionally, the PRA is proposing a ‘negative list’ mechanism for sales tax on services, under which only explicitly exempted services would remain outside the tax net. Minister for Communication and Law Sohaib Ahmad Bharath stressed the need to protect road infrastructure alongside vehicle tax collection.

He called for a viable mechanism for the repair and maintenance of commercially used roads. Minister for Transport Bilal Akbar Khan advocated tax incentives to promote electric vehicles and emphasised strengthening the Excise Department through enhanced HR support and shifting offices to dedicated departmental facilities.