New Budget Proposals: 2 Trillion Rupees in New Taxes, YouTubers and Freelancers on the Tax Radar, Tougher Measures for Non-Filers

Islamabad: The federal government is expected to impose 2 trillion rupees in new taxes in the upcoming budget, with YouTubers and freelancers also being brought under the tax net. Moreover, stricter measures will be implemented for non-filers.
The federal budget for the financial year 2025-26, with a projected volume of over 17,600 billion rupees, will be presented today at 5 PM in the National Assembly, chaired by Speaker Ayaz Sadiq.
According to sources, the budget will include the imposition of 2 trillion rupees in new taxes, along with a proposal to end tax exemptions across all sectors. The overall tax revenue target is expected to be 14,131 billion rupees, while the non-tax revenue target is set at 5,167 billion rupees, bringing the total revenue target to 19,298 billion rupees.
The budget is also expected to allocate 16,286 billion rupees for non-developmental expenditures, with the fiscal deficit expected to be 5% of the GDP, or approximately 6,501 billion rupees. In addition, 8,207 billion rupees will be allocated for interest payments on loans, while 2,550 billion rupees will be allocated for defense. The proposed budget also includes 971 billion rupees for civil government operational costs and 1,186 billion rupees for subsidies.
As part of the new measures, the government is considering introducing a 2.5% carbon levy and increasing the petroleum levy from 78 rupees to 100 rupees per liter, with a revenue target of 1,300 billion rupees. For digital payments on petroleum product purchases, no extra charges will be levied, but cash payments will incur an additional 2 rupees per liter.
A federal development budget of 1,000 billion rupees has been proposed, including a project for the construction of the N-5 highway at a cost of 120 billion rupees. The development budget for state-owned enterprises is estimated at 355 billion rupees.
Furthermore, the provinces are set to receive 8,206 billion rupees, with a combined provincial development budget of 3,300 billion rupees.
The budget includes a proposal for a 10% increase in government employees’ salaries, a 30% disparity allowance for employees in grades 1-16, and a 10% increase in pensions. The pension allocation is estimated to be 1,055 billion rupees.
Tax measures for YouTubers, freelancers, and non-filers are also under consideration. The government plans to tighten tax collection from retailers, increase GST rates from 18% to 20% for non-filers, and raise the tax rate for cash withdrawals exceeding 50,000 rupees from 0.6% to 1.2%.
Sources reveal that IMF negotiations have been taken into account during the budget preparation to ensure the implementation of international financial institution targets and reforms.