Summary Pakistan is considering a fixed tax scheme for traders, higher petroleum levy, expanded sales tax on essential goods, and new digital asset taxation in the upcoming budget, alongside IMF-backed fisca
ISLAMABAD (Dunya News) – The federal government is reportedly considering major tax reforms in the upcoming budget, including the introduction of a fixed tax scheme for traders and an increase in the petroleum levy, according to budget-related sources.
The proposed measures are part of an effort to raise approximately Rs220 billion in additional revenue for the next fiscal year, alongside broader adjustments in the taxation framework.
Under the proposed fixed tax scheme, traders with annual sales of up to Rs20 crore may be required to pay a fixed tax of Rs25,000, potentially exempting them from audit requirements. Officials say the move is aimed at simplifying compliance while broadening the tax base.
Sources also indicate that the International Monetary Fund (IMF) has urged Pakistan to increase the General Sales Tax (GST) rate from 18% to 19% as part of fiscal consolidation measures.
The budget is also expected to include the inclusion of several essential consumer goods—such as infant formula milk, ghee, cooking oil, ketchup, tea, sugar, and powdered milk—into the third schedule of sales tax. This would require printed retail prices on packaging, enabling stricter tax collection at the retail level.
Officials caution that continued taxation on essential commodities could contribute to further price pressures in the coming fiscal year.
In the energy sector, the climate support levy on petroleum products may be doubled from Rs2.5 to Rs5 per litre, with estimated revenues of over Rs90 billion projected from this measure.
The government is also considering the removal of tax exemptions in former tribal areas, as well as the continuation of higher taxation on several essential goods already under heavy tax regimes.
Additionally, tax incentives on electric vehicles may be revised, with exemptions on CKD kits expected to end from July 2026, while reduced GST on hybrid vehicles is also set to expire.
A capital gains tax of 10% to 30% on cryptocurrency trading is also under consideration, alongside proposed amendments to the Income Tax Ordinance to formalise digital asset taxation.
