Sindh Assembly Passes Rs3.652 Trillion Budget for 2026-27
The Sindh Assembly on Sunday night approved a Rs3.652 trillion budget for the 2026-27 financial year after rejecting 1,600 cut motions moved by the opposition. The House also authorised Rs165 billion in supplementary grants and passed the Sindh Finance Bill, under which no new taxes have been imposed.
No New Taxes; Existing Tax Regime Rationalised
Instead of introducing new taxes, the government has rationalised and streamlined the existing tax regime. Changes have been introduced to the rates of certain taxes and the provincial tax net.
Cut Motions Rejected
During the budget proceedings, the opposition moved a cut motion against the allocation for the National Games. Chief Minister Syed Murad Ali Shah opposed the motion, and it was subsequently rejected by the House. Another cut motion was related to the film 'Mera Lyari'. Opposing the proposal, the chief minister said Sindh was the first province to produce a film and that 'Mera Lyari' projected a positive image of the province. The House rejected the motion.
MQM Amendment on Super Tax Rejected
During the passage of the Finance Bill, Muttahida Qaumi Movement (MQM) member Sabir Qaimkhani tabled an amendment proposing an 8% super tax on annual agricultural income of Rs50 million. Opposing the amendment, the chief minister said the federal government had also reduced the super tax on agricultural income because people engaged in agriculture generally did not earn such high incomes. The assembly rejected the amendment.
Revisions to Tax Rates
The Finance Bill also incorporates revisions to various tax rates and expands changes to the provincial tax framework. Following the approval of the budget and the Finance Bill, the Sindh Assembly session was adjourned.
