Pakistan’s FY26 defence budget could jump to Rs2.8 trillion—a 32% hike proposed by Tola Associates. Citing a “war-like situation” with India & new army recruitment, the firm suggests this while forecasting a lower overall budget outlay of Rs17.2 trillion due to reduced debt payments.
Pakistan’s FY26 budget eyes Rs600bn in new taxes, targeting pensioners, social media earners, and processed foods. Stricter measures loom for non-filers, with potential bans on vehicle/property purchases. IMF demands fiscal discipline, tariff hikes, and broader tax base via CRMS.
ACCA Pakistan unveils FY26 budget proposals: a strategic roadmap for tax reform. Key recommendations include an independent Tax Law Simplification Commission, a 3-5 year Tax Policy Roadmap, and a Taxpayer Engagement & Transparency Portal. It also suggests harmonized rates, digital enablement, and dispute resolution reforms, grounded in global best practices.
Pakistan’s Federal Budget 2025-26 will be presented on June 10, preceded by the Economic Survey on June 9. This comes as the IMF approves funding, confirming Pakistan “met all targets” under EFF for foreign exchange stabilization, not budget financing. The budget aims to widen the tax base.
IMF budget talks end today. Any relief for Pakistan’s salaried class hinges on government expenditure cuts. No salary/pension hikes expected. IMF also links export sector relief to state spending cuts & pushes provinces to boost revenue. Defense spending likely to rise.
FBR set to impose sales tax on raw material imports for exporters under EFS in FY26 budget due to IMF pressure to standardize taxes. Exporters warn this, coupled with FTR withdrawal, means higher costs (29-45% effective tax) & liquidity crunch, impacting competitiveness and potentially forcing SMEs out.
Pakistan targets Rs150bn in new revenue by imposing Federal Excise Duty (FED) on biscuits, sweets, sauces, and other packaged consumer goods in the FY26 budget. This move, driven by IMF pressure, shifts tax focus to high-demand, untaxed items to broaden the tax base & ensure equitable burden.
ABAD demands immediate abolition of Section 7E (deemed property income tax) & Section 7F in Budget 2025-26, calling them “crippling burdens” that tax imaginary profits & stifle real estate investment. They propose a transparent, area-based fixed tax model instead.
Pakistan’s govt is urging the IMF to allow super tax cuts & relief for real estate/construction in the new budget. No agreement yet, as IMF seeks data & a clear plan. IMF also pushes provinces to curb spending & tax agri income.
Get ready FBR is targeting 7 million retailers with up to Rs5M fines for tax evasion. Budget 2025-26 brings tougher enforcement, whistleblower rewards, and increased scrutiny to boost compliance.