ISLAMABAD: The federal government of Pakistan has finalised key proposals for the upcoming Budget 2025-26, introducing new tax measures to broaden the tax base and removing several exemptions.
According to sources, the government is considering taxing 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.
Budget 2025: Here’s the Key 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
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