Islamabad – The Pakistan government is preparing to bring major changes in the upcoming federal budget for 2025-26, including new taxes targeting freelancers, YouTubers, and pensioners. A research report by Topline Securities suggests the government is aiming to collect an additional Rs500–600 billion in taxes to meet IMF targets.
To achieve a projected revenue collection of Rs14.1–14.3 trillion, the Federal Board of Revenue (FBR) must grow its collection by 16–18%. While 12% is expected from natural economic growth and inflation, the remaining 4–5% will come from new tax measures. The budget will be presented on June 2, 2025.
Social media earners may face a 3.5% tax on their income from platforms like YouTube and TikTok, which could raise Rs52.5 billion. The government is also considering a 2.5–5% tax on pensions above Rs400,000 per month, potentially generating Rs20–40 billion. In FY25 alone, Pakistan has already spent over Rs673 billion on pensions.
Other key measures include raising GST collections using market prices published by the Pakistan Bureau of Statistics and increasing federal excise duties (FED) on processed foods and cigarettes. The FED on snacks could rise by 20% initially, as part of a longer-term “health tax” plan targeting obesity and other diseases.
In line with IMF conditions, the government may eliminate the “non-filer” category, restrict their economic transactions, and impose a carbon tax through a Rs5/liter hike in the petroleum development levy (PDL) on petrol and diesel. Additional steps include taxing agriculture income, raising GST on luxury goods, and possibly giving relief to the salaried class, real estate, and car importers.