Budget 2025-2026 Details, Features and Taxes updates

The government of Pakistan has introduced taxes for FY 2026, and it has introduced many new taxes for this budget. It has been a worrying sign that FBR could not find a solution for tax implementation and always relied on forceful measures rather than automated collection. The biggest news about this budget is that small cars like the 660 CC will also be subjected to 18% GST this time. Moreover, now e-commerce owners will be responsible for collecting 18% GST taxes, which itself is a surprise because other countries promote e-commerce. However, the finance minister claims that they want to provide a level playing field for all. However, this is just an excuse because FBR could find alternatives to increase the tax bases. 

It seems like in this budget the real target was freelance earners, as people who are earning from Facebook, X accounts, and YouTube will be subjected to income taxes as well. For instance, if it does not report the taxes earned from social media or digital means, then the State Bank of Pakistan will stop the remittance inflows of such a person, and the person could also face other penalties as well. 

It is also reported that sale or purchase property taxes have been reduced. During the budget presentation, Finance Minister Muhammad Aurangzeb on Tuesday proposed that the WHT for property purchasers be reduced from a 4 percent tax to 2.5 percent, the 3.5 percent tax be reduced to 2 percent, and the 3 percent tax be reduced to 1.5 percent. The government of Pakistan also announced the withdrawal of 7% FED property transactions as well. This is a massive relief for the property business. 

Propakistani.PK Source 

• Tax on Dividend remained unchanged at 15 percent
• Defense expense set at Rs. 2.5 trillion
• Current expenditure set at Rs. 16.3 trillion
• Non-tax revenue set at Rs. 5.1 trillion
• FBR taxes set at Rs. 14.1 trillion, 19 percent YoY
• Budget outlay set at Rs. 17.6 trillion, +2 percent YoY
• Online retailers to collect 18% sales tax from sellers
• New tax credit scheme for houses up to 10 marlas
• The government withdraws tax exemptions on higher pensions
• The government sets an expiry date on the duration of spouses of deceased employees
• A massive tax is imposed on online shopping and cash-on-delivery
• The government will now seize items with no barcodes or tax stamps
• A new 18 percent sales tax imposed on solar panel imports
• Advance tax on the purchase of immovable property by filers reduced
• Advance tax on cash withdrawals increased for non-filers
• Government slaps Rs.  500,000 fine, 3-year prison sentence for using wrong CNIC numbers and NTNs