'War on cash': Consumers to pay for avoiding digital options

'War on cash': Consumers to pay for avoiding digital options

Business

proposals aimed at discouraging cash transactions are set to be included in Finance Bill 2025-26

Follow on
Follow us on Google News
Advertisement
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

ISLAMABAD (Dunya News) - The federal government has proposed imposing additional charges in the annual budget to discourage cash purchases, including for petrol.

According to FBR sources, proposals aimed at discouraging cash transactions are set to be included in the Finance Bill for 2025-26.

Sources say a proposal is under consideration to charge up to an additional Rs3 on cash purchases of fuel from petrol pumps. This measure is expected to help curb tax evasion and fuel adulteration at petrol stations.

Steps will also be taken to promote digital payments at petrol pumps, including QR codes, debit/credit cards, and mobile payment options.

FBR sources added that manufacturers and importers would be allowed to levy an additional 2pc tax on cash sales. Multiple meetings have already been held with the corporate sector to make this proposal practical.

Read also: Institutional reforms to lead country toward stable economy: PM

An additional tax on cash purchases from retail shops is also under consideration. Meanwhile, restaurants already enjoy tax exemptions for payments made via card.

“Salaried Class to Receive Minimal Relief”

According to sources, the budget will not offer significant relief to the salaried class in terms of tax rate reductions. The relief for salaried individuals is expected to be minimal.

FBR sources clarified that buyers will still be free to pay in cash after paying the higher tax. Importers and manufacturers will be required to charge the standard 18pc General Sales Tax on digital payments made to their suppliers and buyers.

Payments will be facilitated through simple QR codes and other digital solutions.

Sources further stated that there are no current proposals under consideration to bring unit managers, jewellers, wedding halls, doctors, or lawyers into the tax net.