The federal government has finalised key proposals for the upcoming Budget 2025–26, introducing new taxation measures to broaden the tax base and phasing out several exemptions.
According to sources, the government is considering imposing taxes on agricultural income, freelancing, and digital platforms—sectors that have largely remained outside the formal tax net. The move is part of a broader strategy to formalise the economy and curb tax evasion.
Key Budget Proposals:
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New taxes on agriculture, online freelancing, and digital earnings
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Abolishment of Federal Excise Duty on property transactions
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Reduced taxes on beverages and cigarettes
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Increased Capital Gains Tax (CGT) on shares and property
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End of tax exemptions for the former FATA region, with a proposed 12% tax
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Potential taxation on fertilisers, pesticides, and bakery products, as urged by the IMF
While the tax net is being expanded, some relief is being proposed for salaried individuals:
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10% income tax relief for salaried workers
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Pension increase of 5% to 7.5%
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30% special allowance for government employees in grades 1 to 16
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Proposal to merge ad-hoc relief allowances into the basic salary
