Brawl mars National Assembly budget debate

• Pandemonium after scuffle between opposition, govt members
• Speaker briefly suspends proceedings; reconciliation on both sides saves members from punitive action
• FBR arrest powers restricted to tax frauds of over Rs50m
• Non-filers allowed to buy homes worth Rs50m, cars worth Rs7m

ISLAMABAD: The National Assembly session on Monday broke into a disarray as government and opposition members hurled abuses at each other, with some getting into physical brawls.

The rowdy scenes overshadowed the finance minister’s speech — to formally close the budget session — in which he announced several changes to budget proposals, including more checks on FBR’s powers to arrest tax defaulters and relaxation for non-filers to purchase assets.

The situation in the house became so tense that Speaker Ayaz Sadiq briefly suspended the session as his entreaties for restraint fell on deaf ears.

Sergeant-at-arms, the parliament’s security men, had to be called but they too failed to break the scuffles between angry opposition and government lawmakers.

The tempers in the house flared when opposition lawmakers interrupted the speech of PPP Chairman Bilawal Bhutto-Zardari over his remarks about jailed PTI founder Imran Khan.

In turn, the PPP lawmakers opposed the speaker’s decision to give the floor to leader of the opposition, Omar Ayub Khan.

The first altercation broke out between PTI MNA Iqbal Afridi and PML-N leader Hanif Abbasi amid loud protests and chants from both sides. The war of words soon turned physical with lawmakers from both sides of the aisle pushing and shoving each other near the speaker’s podium.

Speaker Sadiq warned members that such behaviour “would not be tolerated in the House”.

“This is a place for debate, not brawls,” he said while admonishing the lawmakers.

The second scuffle took place between PTI’s Nisar Jatt and PPP’s Agha Rafiullah after the former called Mr Bhutto-Zardari’s recent foreign visit a “junket for recreation and not for diplomacy”.

The sergeant-at-arms and deputy sergeant-at-arms who tried to separate the two members were allegedly abused and thrashed by some opposition lawmakers.

The irate speaker decided to punish four opposition lawmakers but decided not to after both sides held a two-hour-long meeting in his chamber, sources told Dawn.

Later, members from both sides of the aisle apologised for their remarks and actions.

FBR’s arrest powers

Amid the commotion, the finance minister announced the government has decided to restrict the arrest powers granted to FBR officers over alleged tax frauds. The powers, which allowed FBR officers to investigate tax fraud and make arrests, had made businesspersons and lawmakers apprehensive, who warned the excessive authority would be used to victimise taxpayers.

As per the government’s proposal, assistant or deputy commissioners could arrest tax defaulters after seeking approval from the commissioner.

However, after opposition from businesspeople and lawmakers, the prime minister, last week, formed a committee to reevaluate the proposal.

Finance Minister Muhammad Aurangzeb told the house that under the new proposal, court warrants have been made a prerequisite for cases involving tax fraud of up to Rs50 million.

Even in such cases, arrests can only be made on three conditions: if the accused doesn’t join the inquiry after three notices; if the accused attempts to abscond; and tampers with evidence.

The arrests must also be approved by a three-member FBR committee with the accused presented before a special judge within 24 hours, ensuring protection against arbitrary detention and abuse of authority.

Relaxation for non-filers

The finance minister also announced that restrictions proposed on the purchase of assets by non-filers have been eased following the prime minister’s direction.

Now, non-filers will be able to purchase residential property worth up to Rs50m, commercial plots or properties worth up to Rs100m and vehicles worth up to Rs7m.

Additionally, under the existing law, capital gains tax will not apply to property sold after six years of purchase, provided it was bought before July 1, 2024.

However, it would be subject to a 4.5 to 6 per cent withholding tax on purchase, which he said was generally returned on filing returns.

He said the property in personal use for 15 or more years would not be subject to this withholding tax.

The minister also announced a collateral-free loan programme, offering credit of up to Rs1m to farmers owning up to 12.5 acres of land, to support the agriculture sector, especially small-scale farmers.

These loans will cover the costs of seeds, fertilisers, pesticides, diesel and other essential inputs.

Health and crop insurance facilities will also be provided under the scheme.

The government will also introduce an electronic warehouse receipt system, allowing farmers to store crops securely and obtain better market prices, thereby contributing to national food security.

The minister also announced a 20-year loan scheme for low-income individuals to help them build or purchase houses.

Under the Women Inclusive Finance Programme, loans worth approximately Rs14bn have been provided to over 193,000 women.

In the coming year, another Rs14bn will be extended to women with support from the Asian Development Bank, announced Mr Aurangzeb.

On the tax imposed on e-commerce transactions, the minister said the move was aimed at rationalising the tax scheme and helping the industry to flourish.

He further highlighted upcoming policy measures, including a new industrial policy, progress on the electric vehicle policy and comprehensive energy sector reforms aimed at achieving sustainable growth.

‘Distortion’ caused by EFS

Mr Aurangzeb said the export facilitation schemes announced in the past “unintentionally distorted market prices” of cotton as they allowed exporters to import raw materials without paying taxes and duties.

It disrupted the prices of domestically produced cotton and yarn, adversely affecting local farmers.

To address this imbalance, the government has proposed sales tax on the import of raw cotton and yarn to reduce the price gap between imported and local products.

He said the government has proposed a tax of Rs10 per broiler chick due to the poultry industry’s minimal tax contribution.

The Minister warned the ongoing tensions in the Middle East may affect regional economic stability but assured the house that the government was “closely monitoring developments”.

Published in Dawn, June 24th, 2025