Govt plans new taxes, ends exemptions in key sectors in budget 2025–26
Business
Govt plans new taxes, ends exemptions in key sectors in budget 2025–26
ISLAMABAD (Web Desk) – The federal government plans to introduce new taxes and withdraw exemptions in key sectors under the 2025–26 fiscal budget.
Details have emerged about which sectors will lose tax exemptions and which will face new taxes in Pakistan’s 2025–26 budget.
The federal government is considering multiple new tax measures and policy shifts to boost revenue. According to reports, proposals include ending tax exemptions for certain sectors and bringing new income sources into the tax net.
Under IMF pressure, preparations are underway to tax agricultural income. Taxes are also proposed on digital platforms, freelancers, and income earned through freelancing from abroad.
Recommendations include increasing capital gains tax on shares and property and ending tax exemptions for the former FATA region, imposing a 12% tax there.
The government is also considering taxes on fertilizers, pesticides, and bakery items, while proposing a reduction in taxes on beverages and cigarettes.
Partial relief is expected for salaried individuals. The government is reportedly planning a 30% special allowance for employees from Grade 1 to 16, merging ad hoc relief into basic pay, with a proposed 10% increase in salaries and a 5–7.5% rise in pensions.
The budget also aims to expand the tax net and bring the undocumented economy under control. Final decisions on these proposals will be made when the budget is officially presented.
