BUDGET 2026-27 : NA panel questions climate levy

Pakistan's National Assembly Standing Committee on Finance and Revenue has raised concerns over the proposed carbon levy, warning that reduced duties on scrap could create environmental risks. The committee also approved an increase in Islamabad’s token tax, which is likely to affect middle-class vehicle owners. The panel reviewed the National Tariff Policy 2025-30, focusing on phased reductions in import duties.

Lawmakers urged tax authorities to redraft the proposed climate levy, stressing that it must be backed by a clear and defined objective. Commerce Secretary Jawad Paul briefed the committee, while Commerce Minister Jam Kamal was absent. Committee chairman Naveed Qamar criticized the government for collecting levies without initiating concrete climate projects, warning that such practices would damage Pakistan’s image. He remarked that money from the IMF was being consumed without projects, calling it a 'complete failure'.

PPP lawmaker Hina Rabbani Khar recalled Pakistan's past global recognition as a climate support leader and urged the government to reclaim that standing, emphasizing the country's vulnerability to environmental impacts. The committee also scrutinized amendments to the Petroleum Products (Petroleum Levy) Ordinance, 1961, focusing on strengthening enforcement against defaulting oil marketing companies. Qamar stated that these companies act as collection agents for government levies and should not retain public funds, expressing concern over delays in recovering petroleum levies.

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You take money from the IMF, impose levies, but start no projects. This is a complete failure.