PPP seeks clarity on climate support levy in budget talks with govt

The government and the Pakistan Peoples Party (PPP) held consultations on budgetary matters, including the controversial climate support levy, during a meeting between a government delegation led by Deputy Prime Minister and Foreign Minister Ishaq Dar and PPP leaders Sherry Rehman and Saleem Mandviwala.

During the discussions, PPP representatives demanded that the climate support levy be separated from the petroleum levy and stressed that the revenue generated through the levy should be exclusively utilized for environmental and climate-related projects.

The PPP expressed reservations over budgetary cuts linked to climate change initiatives and questioned the government's management of funds collected under the climate support levy. Party leaders emphasized that the public is already paying the levy and therefore deserves transparency regarding how the money is being spent.

Highlighting the growing threat posed by climate change, PPP leaders pointed to the rapid melting of glaciers and the increasing frequency of floods, arguing that the utilization of climate support levy funds must be clearly outlined. The party also sought details on the specific projects and purposes for which the collected revenue has been allocated.

Speaking after the meeting, Senator Saleem Mandviwala said the PPP had proposed replacing the climate support levy with a climate tax. He added that the government had sought additional time to review and respond to the proposal.

Meanwhile, Minister of State for Finance Bilal Azhar Kayani said consultations between the government and the PPP on the federal budget were continuing in a positive atmosphere. He noted that the PPP and the ruling PML-N maintained a strong working relationship and that there were no major complaints regarding the budget consultation process.

Kayani said the federal budget was prepared after extensive discussions between both coalition partners. He further stated that work on the Sales Tax and Customs Tax Acts had been completed by the Senate Standing Committee, while consultations on the Income Tax Ordinance and customs duties would continue in upcoming committee meetings. The National Assembly Standing Committee is also scheduled to review budget proposals.

Defending the government's fiscal plan, Kayani described the budget presented by Prime Minister Shehbaz Sharif as a positive one. He highlighted key measures including salary increases for government employees, the abolition of the so-called "pink tax" affecting industry, exporters, and women, housing loan facilities, and incentives aimed at supporting youth and the agriculture sector.