The federal government is considering raising taxes on bank deposits and savings schemes in the upcoming 2025-26 budget, according to Federal Board of Revenue (FBR) sources.
A key proposal includes increasing the withholding tax on cash withdrawals by non-filers from 0.6% to 1.2%. Daily withdrawals exceeding Rs50,000 may also face additional taxes.
Additionally, tax hikes are expected on small vehicles under 800cc, with a proposed rise in general sales tax on locally manufactured cars from 12.5% to 18%. Levies on petrol and diesel vehicles, as well as higher capital gains and profit taxes, are under review.
While a cut in super tax is being considered, it remains contingent on IMF approval.
The federal and provincial annual development program has also been finalized, with over Rs4 trillion earmarked. Suggested macroeconomic targets include 4.2% GDP growth, 7.5% inflation, and 4.5% agricultural growth.
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Development funds proposed include Rs1.05 trillion for federal PSDP and Rs2.8 trillion across provinces. Notable allocations include Rs259 billion for water and power projects, Rs229 billion for highways, and Rs42 billion for health and education.
Pakistan and the IMF are continuing negotiations on budget targets, tax revenue projections, energy reforms, and relief measures for salaried and industrial sectors. Final budget figures are expected to be shaped in consultation with the IMF.
