Budget 2025-26: Threat of Rs500bn tax hike if enforcement measures blocked

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.