๐ฃ๐ฎ๐ธ๐ถ๐๐๐ฎ๐ป ๐๐๐ฑ๐ด๐ฒ๐ ๐ฎ๐ฌ๐ฎ๐ฑ: Extra Tax on Petrol & Cash Purchases
ISLAMABAD โ The federal government, as part of the Pakistan Budget 2025, has proposed new tax measures targeting petrol consumption and cash-based transactions. The move comes in an effort to boost revenue collection, curb undocumented trade, and comply with IMF guidelines.
๐ฐ Additional Tax on Petrol Prices
Finance ministry officials have confirmed that the government plans to raise the petroleum levy, directly increasing the per-liter cost of petrol for consumers. The new tax is expected to bring in billions of rupees in additional revenue, but will likely contribute to inflationary pressure.
“With global fuel prices stabilizing, this is a strategic moment to increase local taxes on fuel without causing panic,โ said a senior official.
Impact on Consumers:
- Petrol prices may rise by Rs. 15โ20 per liter
- Higher transportation and logistics costs
- Possible increase in prices of essential goods
๐ธ Tax on Cash-Based Purchases
To push for digital payment adoption and formal documentation of the economy, the budget includes a new tax on large cash purchases โ particularly in sectors like real estate, retail, and luxury goods.
Key Points:
- Cash transactions above a certain threshold (e.g., Rs. 50,000 or more) will attract a withholding tax
- Applies to both individual and business purchases
- Likely exemptions for pensioners and low-income groups
This is part of the governmentโs broader plan to increase financial transparency and widen the tax base in a country where cash is still the primary mode of transaction.
๐ Why These Measures Now?
Pakistan is under pressure to reduce its fiscal deficit, enhance tax-to-GDP ratio, and meet IMF structural benchmarks. The new taxes are expected to:
- Raise domestic revenue without introducing entirely new taxes
- Discourage informal economic activity
- Encourage the use of banking channels
๐ Public & Economic Reaction
While economists view the move as necessary but painful, public reaction remains mixed. Transporters, traders, and daily wage earners are expected to be most affected.
Consumer rights groups have already warned that inflation may rise, especially if petrol price hikes are implemented without targeted subsidies.
๐งพ Conclusion
The Pakistan Budget 2025 reflects a continued effort to stabilize the economy, but at a cost to consumers. As new taxes take effect, the government will need to balance revenue goals with public welfare to avoid backlash and economic slowdown.
