Islamabad Assembly Proposal Aims to Reduce Federal Tax Burden

Federal Minister for Parliamentary Affairs Tariq Fazal Chaudhry said that establishing a separate assembly for Islamabad would not increase public spending and could actually save money. He noted that vehicle‑registration taxes generate roughly 15‑18 billion rupees annually, all of which currently goes to the federal treasury, while total tax revenue in the capital reaches 80‑100 billion rupees. Chaudhry argued that an autonomous Islamabad assembly would allow the city to retain a larger share of this revenue, help resolve rural‑urban disparities and improve service delivery.

He indicated that Prime Minister Shahbaz Sharif will hold open consultations with residents to gather their views on the proposal. Earlier discussions had already agreed that provinces would receive a greater share of federal tax receipts, and the Islamabad assembly is presented as a way to extend that principle to the federal capital.