Finance Minister Muhammad Aurangzeb is presenting Budget 2025-2026 in the National Assembly. This is the Prime Minister (PM) Shehbaz led government’s second federal budget.
Major relief announced for salaried class
The tax rate for employees earning between Rs600,000 to Rs1,200,000 has been reduced from 5% to 1%.
The tax for those earning Rs1,200,000 annually has been decreased from Rs30,000 to Rs6,000.
For individuals earning up to Rs2,200,000 , the tax has been reduced from 15% to 11%.
The tax rate for those earning between Rs2,200,000 to Rs3,200,000 is being lowered from 25% to 23%.
Defence budget 2025-2026
Pakistan has allocated Rs2.55 trillion for defence budget. Last year it was Rs2.1 trillion.
What got cheaper in Budget 2025-2026 ?
- Fertilizer
- Agri Loans
- Farm Machinery
- Tube Wells (Solar)
- Low-Cost Housing
- Electric Vehicles (EVs)
- Electricity
- Medical Equipment
- Industrial Machinery
- Textile Inputs
- Poultry Inputs
What got expensive Budget 2025-2026 ?
| Category/Item | Details |
|---|---|
| Interest Income | To promote horizontal equity, the tax rate on interest income has been raised from 15% to 20%. |
| Online Shopping | Proposals include applying an 18% sales tax on online shopping and e-commerce. Additionally, the withholding sales tax rate on e-commerce has been proposed to increase from 1% to 2%. This will affect online purchases from platforms like Temu, AliExpress, and Shein. |
| Fast Foods, Processed Foods, Beverages | The government is considering imposing excise duties (e.g., 5%) on various everyday items, including chips, noodles, cold drinks, ice cream, biscuits, and frozen foods. |
| Carbon Levy on Petroleum Products | A new carbon levy of Rs2.5 per litre on petroleum products is anticipated, which would increase the price of petrol and diesel. |
| Cash Withdrawals (for Non-Filers) | The withholding tax on cash withdrawals exceeding Rs. 50,000 from banks for non-filers may be increased from 0.6% to 1.2%. |
Opposition’s reaction
The opposition is disrupting the Finance Minister’s speech, with some lawmakers whistling, others sloganeering, and still more thumping their desks.
Privatisation
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