ISLAMABAD – Pakistani government is planning to introduce additional charges on cash transactions, particularly purchase of petrol and other consumer goods, in upcoming Budget 2025–26, in new push to promote digital payments and curbing tax evasion.
Federal Board of Revenue (FBR) reportedly wants consumers to pay cash at petrol pumps and it may face extra charge of up to Rs3 per litre to demote cash-based fuel purchases, which are often linked to tax evasion and fuel adulteration.
To support this transition, petrol stations across the country will be required to implement digital payment solutions, including QR codes, debit/credit card systems, and mobile wallets.
In addition to fuel, the government is also considering imposing extra taxes on cash purchases at retail shops. Manufacturers and importers may be permitted to charge an additional 2% tax on any sales made in cash. These changes, sources say, are part of a broader strategy to encourage electronic payment methods across all sectors of the economy.
Meetings have already been held with stakeholders in the corporate sector to ensure a smooth rollout of these changes. Consumers will still have the option to pay in cash—but only if they are willing to absorb the higher tax burden.
Importers and manufacturers will also be required to collect the standard 18% General Sales Tax (GST) on all transactions made via digital payment methods. The government plans to make simple QR codes and mobile payment systems mandatory at the point of sale to make compliance easier and traceable.
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