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Express Tribune
26-06-2025
- Business
- Express Tribune
CM announces major tax relief
Chief Minister Murad Ali Shah has announced extensive tax relief measures in the 2025-26 provincial budget aimed at stimulating economic growth and easing financial burdens on citizens. In addition to the reliefs included in the Finance Bill, several incentives have been formalised through amendments to key laws. The measures span both tax and non-tax sectors, targeting agriculture, transport, education, and small businesses. To support farmers amid a 30.7% decline in cotton production, the cotton fee has been abolished. The drainage cess has also been removed to counteract erratic weather effects. A 50% reduction has been approved in fees for property transfers, certified copies, sales, solvency, and inheritance certificates. The annual tax on commercial vehicles has been cut to Rs1,000, and professional tax has been completely abolished. The Sindh Assembly passed amendments to seven laws, including the repeal of the Sindh Entertainment Duty Act 1958, and changes to the Stamp Act, Motor Vehicles Act, and Local Government Act, eliminating the local cess. Stamp duty on third-party motor insurance is now fixed at Rs50, and two-wheelers are exempt from mandatory insurance. The entertainment duty has been removed entirely, benefiting cinemas, theatres, art councils, and cultural venues. The sales tax exemption limit for small businesses has been increased to Rs4 million, and for restaurants and caterers, to Rs5 million, offering Rs400 million in relief. Terming the initiatives as "progressive and people-centric," the CM said the budget reflects a strong commitment to economic revitalisation, equitable taxation, and long-term development in Sindh.
Express Tribune
26-06-2025
- Business
- Express Tribune
Rs3. 45 trillion budget sails through provincial house
Out of the 168 lawmakers of the Sindh Assembly, only 58 were present on Tuesday. PHOTO: ONLINE The Sindh Assembly on Wednesday approved the Rs3.45 trillion budget for the fiscal year 2025-26 — a 12.9% increase from last year. It also passed a supplementary budget of Rs156.069 billion for the current fiscal year 2024-25. Presenting the Sindh Finance Bill, Chief Minister Murad Ali Shah highlighted the government's reform initiatives, including digitisation of land records using blockchain, birth registration via mobile apps, farmers' access to loans through the Sindh Cooperative Bank, and the launch of a one-stop land transfer system. The budget earmarks Rs43 billion for new ad-hoc relief allowances for government employees and Rs16 billion for a 15% pension increase. A total of 188 demands for grants were presented, with the opposition submitting 2,002 cut motions, all of which were rejected by majority vote - except one joint motion against the special judicial allowance, which was unanimously passed by both opposition and treasury benches. Key budget allocations include Rs42.2 billion for public universities, Rs10.4 billion for medical education, Rs5.2 billion for ambulance services under the Sindh Emergency Health Services, and Rs5 billion for the "Inclusive City" initiative for persons with disabilities. Development expenditure has been set at Rs1,018.3 billion (30% of the total budget), with current revenue expenditure estimated at Rs2,150 billion. Salaries account for 39% of the budget, non-salary operations for 19%, and pensions for 13%. The Sindh government expects to generate Rs3,111.5 billion in revenues during FY2025-26 - a 21.4% increase from the revised estimates of the previous year. Over the next three years, the province anticipates an average annual revenue growth of 12.5%. If the Federal Board of Revenue (FBR) achieves its Rs14.131 trillion target, Sindh is likely to receive Rs269 billion in federal transfers. The CM also outlined key developmental priorities including, Rs8 billion for Benazir Hari Card (agricultural subsidies); Rs1.8 billion for livestock breeding; subsidies for solar-powered tube wells and drip irrigation; Rs2 billion for low-income housing; Rs2 billion for the Sindh Peoples Support Programme; Rs200 million for orphans and widows, and Rs500 million per project to empower women in agriculture and SMEs In health, allocations include Rs4.5 billion for an SIUT center in Larkana, Rs21 billion for SIUT, Rs23 billion for NICVD, Rs16.5 billion for PPHI, and Rs10 billion for a new hospital in Larkana. Another Rs10 billion have been allocated for the Dhabeji-DHA water pipeline and Rs3.1 billion for the Hub Canal. Rs25 billion is earmarked for green energy, and Rs45 billion for SDG-aligned public health projects.
Business Recorder
26-06-2025
- Business
- Business Recorder
Sindh Assembly approves FY26 budget
KARACHI: The Sindh Assembly on Wednesday approved the provincial budget for the fiscal year 2025–26, amounting to Rs3.45 trillion, along with Rs156.069 billion in supplementary grants for the outgoing year. Marking a 13 percent increase from the previous year's outlay, the budget places significant emphasis on social protection, infrastructure development, economic reforms, and targeted relief for low-income groups. Chief Minister Syed Murad Ali Shah presented the Sindh Finance Bill 2025, which aims to rationalise taxes and reform financial laws to reflect changing economic realities. The budget introduces major tax relief measures, including the abolition or restructuring of six key levies. Among these, professional tax has been eliminated, offering Rs5 billion in direct relief to salaried individuals and small businesses. Entertainment duty has also been removed to promote cultural activities. Additionally, revenue fees, such as those for land transfer, certified copies, sales certificates, solvency, and succession documents have been slashed by 50 percent. Annual tax on commercial vehicles has been reduced to Rs1,000, while third-party motor insurance stamp duty has been capped at Rs50, and motorcycles will be exempted from mandatory insurance starting FY 2025–26. The provincial government has also abolished cotton fees in response to a 30.7 percent decline in the agricultural produce and removed the drainage cess to mitigate the impact of erratic weather and poor crop yields. Amendments or repeals were approved for seven laws, including the Stamp Act (1899), Motor Vehicles Act (1939), Sindh Entertainment Duty Act (1958), Sindh Motor Vehicle Taxation Act (1958), and specific sections of the Sindh Finance Act (1964), the Sindh Sales Tax on Services Act (2011), and the Sindh Local Government Act (2013). The budget further raises the sales tax exemption threshold for businesses from Rs2.5 million to Rs5 million, offering an estimated Rs400 million in relief. Small enterprises with an annual turnover of up to Rs4 million will now be exempt from sales tax. The government expects that the removal of local cess will help lower production costs and boost agricultural profitability. Murad Ali Shah highlighted that total expenditures for FY 2025–26 are projected at Rs3.45 trillion. Of this, 39 percent is allocated to salaries, 62 percent to current revenue expenses (Rs2.15 trillion), 30 percent to development expenditure (Rs1.018 trillion), and Rs281.7 billion to capital expenses. Grants to local and autonomous bodies constitute 29 percent, non-salary operations and maintenance 19 percent, and pensions 13 percent. He noted that, despite a 3.6 percent drop in last year's budget, Sindh expects to receive Rs3.111 trillion in revenues, marking a 21.4 percent rise from revised estimates. The province anticipates an average annual revenue growth of 12.5 percent over the next three years. If the Federal Board of Revenue (FBR) meets its Rs14.131 trillion target, Sindh expects to receive approximately Rs269 billion from the federal divisible pool. Major allocations include Rs42.2 billion for public universities, Rs10.4 billion for medical education, and Rs5 billion for the 'Inclusive City' initiative supporting persons with disabilities. Other allocations include Rs6.6 billion for the Sindh Institute of Child Health & Neonatology, Rs5.2 billion for ambulance services under the Sindh Emergency Health Services, and Rs10 billion for a new hospital in Larkana. The SIUT has been allocated Rs21 billion, NICVD Rs23 billion, and PPHI Rs16.5 billion. In terms of infrastructure and green energy, Rs10 billion has been earmarked for the Dumloti–DHA water pipeline, Rs3.1 billion for the Hub Canal, and Rs25 billion for green energy projects. Public health initiatives aligned with the Sustainable Development Goals (SDGs) have received Rs45 billion. Agriculture and social support programs include Rs8 billion for the Benazir Hari Card, Rs1.8 billion for livestock breeding, and subsidies for solar tube-wells, drip irrigation systems, and super seeders. Low-income housing projects will receive Rs2 billion, while Rs2 billion has been allocated to the Sindh Peoples Support Program. Additional support includes Rs200 million for orphans and widows, and Rs500 million per initiative for women's empowerment in agriculture and SMEs. The budget also doubles stipends for persons with disabilities and increases assistive devices distribution from 20,000 to 40,000 units. Speaking after the budget's passage, Murad Ali Shah extended congratulations to all members of the Sindh Assembly, including opposition legislators, and expressed gratitude to his party leadership and cabinet. He noted with appreciation that every member of the opposition participated in the budget debate, calling it a healthy sign of democratic engagement. Murad Ali Shah remarked that Sindh belongs to all, and love for the province should rise above political point scoring. 'It is heartening that another budget has been passed by this Assembly. On this important occasion, I thank the party leadership, the cabinet, and all members of this House who took part in the process,' he said. The Chief Minister added that wherever a majority exists, the government has the mandate to pass a budget, but meaningful suggestions are welcome from all quarters. 'I have speeches from every member; some have made very constructive proposals, and we will consider them,' he said, adding that future efforts would include digitizing cut motions in the budget to ensure better tracking and evaluation. He praised the relentless work of the Sindh Finance Department in preparing the budget, highlighting that the department staff worked late nights for weeks without breaks. Murad acknowledged the contribution of P&D's Najam Shah and announced bonuses for both Finance Department personnel and the staff of the Assembly for their exceptional efforts. Opposition Leader Ali Khurshidi also addressed the House, extending his congratulations on the budget's approval and expressing hope that the government would work to overcome its shortcomings. 'The opposition has played its part, and I commend all opposition members as well as the government,' he said. Jamaat-e-Islami (JI) MPA Muhammad Farooq congratulated all members, noting that democratic proceedings enhance trust in governance. He appreciated the Chief Minister's openness to criticism. PTI's Shabbir Qureshi said both government and opposition members represented their constituencies well during the budget session, praising ministers Sharjeel Inam Memon and Zia Lanjar for their contributions. 'Murad Ali Shah showed grace in his final speech. I hope this marks the beginning of a new era of development in Sindh,' he said. Senior Minister Sharjeel Inam Memon lauded the role of journalists and cameramen who worked under challenging conditions throughout the session. 'This time, the budget session ended on a positive note, unlike in previous years. Everyone deserves congratulations for that,' he remarked. In his closing remarks, Murad Ali Shah called the budget a 'responsible, inclusive, and forward-looking financial plan' that promotes equitable development and responds to the economic challenges faced by the people. 'This budget is a roadmap for recovery, opportunity, and social justice in Sindh,' he said. Copyright Business Recorder, 2025
Business Recorder
25-06-2025
- Business
- Business Recorder
FY25: Sindh PA approves Rs156bn supplementary budget
KARACHI: The Sindh Assembly on Tuesday approved a supplementary budget of over Rs156 billion for the fiscal year 2025–26, brushing aside fierce resistance of the opposition in the form of 735 cut motions, which were overwhelmingly rejected by the house. Chief Minister Syed Murad Ali Shah, who also holds the portfolio of Sindh's Finance Minister, presented 84 supplementary demands for grants, including charged expenditures for the Governor's Secretariat and the Provincial Assembly. These demands were passed by the assembly during a session chaired by Speaker Syed Awais Qadir Shah. The opposition had tabled over 735 cut motions against the supplementary grants, urging individual consideration of each. Leader of the Opposition Ali Khurshidi insisted that every motion was prepared with diligence and should be debated separately. However, the Speaker grouped the motions together and subjected them to a joint vote, in which they were rejected by a majority. Presenting the supplementary demands, Murad Ali Shah detailed the expenditure breakdown, stating that over Rs5 billion was allocated to the judiciary's charged expenditures, Rs3 billion for the Sindh Assembly, and more than Rs1 billion for the Governor House. He further explained that over Rs59 billion was earmarked for debt servicing. He clarified that expenses related to the courts are non-negotiable, but administrative departments including the Assembly could be asked to exercise restraint. Interestingly, the Chief Minister noted that while there were cut motions filed against CM Secretariat expenditures, none targeted those of the Governor or Speaker. MQM's Muhammad Mazahir Amir raised concerns over rising petroleum costs due to global tensions in the Gulf region and urged the government to curb fuel expenditures. Murad Ali Shah responded by clarifying that although fuel prices had indeed risen, consumption levels had remained unchanged, which is why related costs had gone up. In another cut motion, Muhammad Mazahir questioned an allocation for the CM House garden, to which the Chief Minister clarified that the funds were for stationery and supplies, not landscaping. Murad Ali Shah also disclosed that during the visit of the late Iranian President, who had come to the CM House, hospitality and protocol expenses had totalled Rs200 million, including traditional Sindhi gifts such as Ajraks and caps, and occasionally handcrafted items. 'These are not lavish expenses but unavoidable state protocols,' Murad Ali Shah said, while asserting that all valuable gifts he received were kept at the CM House or submitted to the Toshakhana, in accordance with national laws. In his address, the Chief Minister made it clear to the opposition: 'Forget that any of the cut motions will be passed.' He acknowledged the opposition's right to contest, adding, 'It is their democratic role to oppose, so the public can see what they are standing against.' MQM's Muhammad Rashid Khan suggested that state gifts should come from personal pockets. In response, Murad Ali Shah stated he receives many quality gifts, all of which are documented and stored appropriately. The Sindh Assembly session was adjourned to resume on Wednesday at 11 a.m., when the Finance Bill 2025 is scheduled to be tabled. Meanwhile, the opposition has also submitted over 2,000 cut motions on the upcoming fiscal year's budget, which the house will decide in the next sitting. Copyright Business Recorder, 2025
Express Tribune
24-06-2025
- Business
- Express Tribune
PA approves Rs156b supplementary budget amid uproar
The Sindh Assembly on Tuesday approved supplementary expenditures amounting to Rs156 billion for the fiscal year 2024-25, brushing aside 735 cut motions submitted by opposition lawmakers. The session, chaired by Speaker Syed Owais Qadir Shah, witnessed heated exchanges as opposition members demanded individual debate on each motion — a request ultimately denied by the chair. The supplementary budget, presented by Chief Minister Syed Murad Ali Shah, who also holds the finance portfolio, included allocations for the Governor's Secretariat, Provincial Assembly, and judicial expenses, among others. The CM tabled 84 supplementary demands for grants, which were passed by a majority vote after the opposition's motions were clubbed and rejected collectively. In his address, CM Shah detailed the breakdown of the expenditures: Rs5 billion for judicial (charged) expenses, Rs3 billion for the Sindh Assembly, over Rs1 billion for the Governor's House, and a significant Rs59 billion for debt servicing. He emphasized that judicial expenses are constitutionally protected and beyond the executive's control, while urging administrative departments to exercise fiscal restraint. Opposition Leader Ali Khursheedi criticized the consolidation of cut motions, arguing that the opposition had invested considerable effort in drafting them individually. However, the Speaker maintained procedural authority and moved forward with a collective vote.
