FBR says proposals are being finalised for inclusion in Finance Bill 2025–26 and are focused on discouraging cash-based transactions, a local TV reports
ISLAMABAD: (UrduPoint/Pakistan Point News-June 2nd, 2025) In a major policy shift aimed at promoting digital transactions and curbing tax evasion, the federal government is considering imposing additional charges on cash purchases—including petrol—as part of the upcoming federal budget for fiscal year 2025–26, a local private tv reported on Monday.
The Federal board of Revenue (FBR), according to the reports, said that the proposals are being finalised for inclusion in the Finance Bill 2025–26 and are focused on discouraging cash-based transactions.
One of the key recommendations under consideration is a surcharge of up to Rs3 per litre on the purchase of petrol through cash payments. The move is expected to assist in tackling tax evasion and fuel adulteration at petrol pumps.
To support the shift toward digital transactions, petrol stations will be required to enable electronic payment options, including QR codes, debit and credit cards, and mobile payment platforms.
Additionally, a local TV reported that the manufacturers and importers may be allowed to levy an extra 2% tax on cash-based sales. FBR sources, according to a TV report, confirmed that several rounds of discussions have already been held with stakeholders in the corporate sector to ensure the implementation of the proposal.
A similar surcharge on cash purchases at retail outlets is also under active consideration. Restaurants, however, already enjoy tax exemptions on payments made via cards.
Despite these measures, salaried individuals are unlikely to receive substantial tax relief in the upcoming budget. According to sources, any relief for the salaried class will be nominal.
The FBR officials clarified that while buyers would retain the freedom to use cash, they would be subject to higher taxes for doing so.
Meanwhile, the importers and manufacturers would be obligated to collect the standard 18% general sales tax (GST) on digital transactions from their suppliers and customers. These payments would be processed through QR codes and other simplified digital solutions.
The sources also stated that there is currently no proposal under consideration to bring unit managers, jewellers, wedding halls, doctors or lawyers into the tax net.
The final decision on the said proposals would be announced as part of the federal budget later this month.
