WEBDESK: The Pakistani government is likely to impose new taxes in the budget 2025-26 fiscal year, including taxes on the income of freelancers, vloggers and YouTubers. The move is being taken to collect an additional tax of about Rs500 to Rs600 billion, a research report released on Thursday said.
According to a Topline Research report titled “A Review of Pakistan’s Federal Budget for FY26,” the government plans to set a revenue target of Rs14.1 to Rs14.3 trillion for the Federal Board of Revenue (FBR), which would be 16-18 percent higher than last year. While 12% of this increase will come from natural economic growth and inflation, the remaining 4–5% will need to be collected through new taxes.
The budget for the financial year 2025-26 will be presented on June 2, 2025.
Budget 2025-26 proposals
One of the most talked-about proposals is taxing income from platforms like YouTube and TikTok. The Institute of Cost and Management Accountants of Pakistan (ICMAP) has suggested a 3.5% tax on social media earnings, which could bring in an estimated Rs52.5 billion.
Budget 2025-26 may also include a new tax on pensioners who receive more than Rs400,000 per month. The proposed rate is between 2.5% and 5%. While this idea was floated last year too, it seems more likely to be implemented this time, possibly adding Rs20–40 billion to the treasury.
According to the report for Budget 2025-26, in the first 9 months of the fiscal year 2024-25, the government has spent Rs673 billion on pensions, which could reach approximately Rs0.9 to Rs1 trillion throughout the year.
In addition, health-related taxes Budget 2025-26 could be coming for ultra-processed foods like biscuits and snacks. A 20% federal excise duty is expected initially, rising to 50% by 2028-29, to help fight obesity and related diseases.
The report also mentioned that the government will not only increase the tax on health-related items but also cigarettes as well.
What’s expected about salaries in Budget 2025-26?
As the government has paced up efforts to finalise the budget for upcoming fiscal year, it is considering various proposal regarding an increase in salaries of the government employees.
Reports claimed that the government would announce the 25% increase in salaries for employees from Grade 1 to 16 and 20% from Grade 17-22.
However, there is no official statement in this regard as the final decision will be rolled out on the budget day.
Non-filer category being abolished
In addition, the government has informed the International Monetary Fund that it is abolishing the non-filer category. A bill has also been introduced in Parliament in this regard. If the bill is passed, non-filers will be barred from major economic transactions such as purchasing vehicles and property.
The government is also reviewing fuel levies, planning to increase the Petroleum Development Levy on petrol and diesel by Rs5 per litre over two years. If applied to furnace oil too, this move could generate Rs35–80 billion more.
As Budget 2025-26 draws near, many are watching closely to see how these proposals will affect their everyday lives and income.
