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Budget 2025–26: Govt plans new taxes on agriculture and freelance sectors

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Web Desk

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:

  • New taxes on agriculture, online freelancing, and digital earnings

  • Abolishment of Federal Excise Duty on property transactions

  • Reduced taxes on beverages and cigarettes

  • Increased Capital Gains Tax (CGT) on shares and property

  • End of tax exemptions for the former FATA region, with a proposed 12% tax

  • 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:

    • 10% income tax relief for salaried workers

    • Pension increase of 5% to 7.5%

    • 30% special allowance for government employees in grades 1 to 16

    • Proposal to merge ad-hoc relief allowances into the basic salary

Web Desk

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