Government to Provide Inflation-Linked Salary Relief in Budget 2025; Key Measures Proposed to Discourage Cash Transactions

Islamabad: The government has decided to offer salary relief to public sector employees in the upcoming Budget 2025 in line with rising inflation, according to sources. Additionally, major proposals aimed at discouraging cash transactions are under consideration in the Finance Bill 2025.
Sources indicate that government employees have been demanding a substantial increase in salaries and allowances, including setting the minimum monthly wage at Rs. 50,000. In the event their demands are not met, they have announced plans to stage a sit-in outside Parliament on June 10.
To discourage cash transactions and curb tax evasion and fuel adulteration, the Federal Board of Revenue (FBR) has proposed a Rs. 3 per liter surcharge on fuel purchases made in cash. Manufacturers and importers may also be allowed to levy an additional 2% tax on cash sales.
Other measures under consideration include imposing extra taxes on Tier-1 retailers for cash-based purchases. While restaurants already enjoy tax exemptions on debit and credit card payments, petrol pumps will be encouraged to offer digital payment options, such as QR codes, debit/credit cards, and mobile wallets. However, consumers will still have the freedom to pay in cash by bearing the higher tax.
FBR sources clarified that the new budget does not include any proposals to bring event managers, jewelers, wedding halls, doctors, or lawyers into the tax net.