Pakistan’s organized retail sector (CAP) demands a tax overhaul in the FY26 budget! 🛍️ They’re urging fixed GST for digital payments & simpler income tax for small retailers to formalize the undocumented sector & boost compliance.
The government plans to double the withholding tax on cash withdrawals by non-filers from 0.6% to 1.2%, targeting an extra Rs. 15–20 billion in revenue for FY 2025-26. This move aims to widen the tax base and encourage compliance by taxing withdrawals over Rs. 50,000 daily.
The ride-hailing sector in Pakistan urges the government to adopt a fair, tiered taxation system in the upcoming budget, arguing that equal tax rates for platforms with vastly different commission structures hinder growth and innovation in urban mobility.
Pakistan’s Budget 2025–26 may introduce mandatory scrutiny of banking transactions over Rs3 million in personal accounts to curb tax evasion and enhance transparency. Banks will report suspicious activity, creating a digital audit trail to strengthen financial accountability and align with global standards.
As Budget 2025–26 nears, the future of Pakistan’s controversial super tax remains uncertain. With mounting legal challenges and strong opposition from businesses and tax experts, the government faces tough choices on whether to reform, retain, or repeal the levy.
The govt is planning a 1.5% withholding tax on import payments via banks in the FY26 budget, aiming to curb under-invoicing and boost revenue. The tax, adjustable against final liabilities, awaits IMF approval as part of efforts to meet a Rs. 14 trillion target.
The FBR has proposed slashing FED on packaged juices from 20% to 15% in Budget 2025–26—but only if the industry provides post-dated cheques to guarantee tax revenue. The juice sector, facing a 45% sales drop, argues the move is unworkable and risks further decline.
Pakistan enters decisive talks with the IMF ahead of Budget 2025–26, eyeing tough tax hikes, removal of exemptions, and crackdown on evasion. With fiscal reforms tied to vital IMF funding, sectors like agriculture and energy brace for impact.
ICAP has urged the government to enforce strict digital customs controls to protect CPEC from smuggling and misuse. In its budget proposals, it called for real-time data sharing with China, container scanning, GPS tracking, and tighter documentation to safeguard trade integrity.
FBR proposes a massive hike in withholding tax on luxury cars (above 1300cc) for the FY26 budget! 🚗💨 This bold move aims to boost revenue and curb high-end imports, making prestige vehicles significantly more expensive.