Business Desk 
Jun 02, 2025
With the annual budget for fiscal year 2025-26 set to be announced next week, the Federal Board of Revenue (FBR) is reportedly working on various tax proposals for the upcoming federal budget 2025-26 for several sectors.
Citing sources in the FBR, Geo News reported that notable among significant tax raises on the cards include bank deposits and savings schemes.
Budget 2025-26 Pakistan: Tax on cash withdrawals
Apart from that, non-filers are expected to face even higher withholding taxes on cash withdrawals from banks, with tax rates rising from 0.6% to 1.2%. Another extra tax proposal is also likely for daily cash withdrawals exceeding Rs50,000.
Budget 2025-26 Pakistan: Tax on vehicles
The FBR is also mulling over sales tax increases on vehicles with engine capacities below 850 cc, alongside an uptick in the Goods and Services Tax (GST) rate on locally manufactured vehicles from 12.5% to 18%. Moreover, a levy on petrol and diesel-powered vehicles is also under consideration by the authority.
It was learned that there are proposals also for increased taxation on capital gains and profits, as discussions are ongoing regarding a potential reduction in the super tax rate in the new federal budget 2025-26.
As the budget announcement date in Pakistan approaches, these proposed tax changes are believed to enhance revenue generation but might also impact the financial landscape for individuals and businesses across the country.
As the government prepares to disclose Pakistan's budget 2026 plans, stakeholders and industry insiders are keeping a close watch on these developments.
