Major Tax Relief Expected in Budget 2025-26 for Businesses and Citizens
Pakistan’s upcoming Budget 2025-26 is set to bring major tax cuts, offering relief to citizens burdened by high taxes. Sources reveal that the government plans to remove withholding tax on raw materials to support struggling industrial and construction sectors.
Prime Minister Shehbaz Sharif has directed ministries to consult industry stakeholders, aiming to reduce production costs and tax refund delays, thereby boosting industrial activity.
Read more: FBR Revises Property Valuation Rates in Karachi
The real estate sector may also benefit, with proposals to abolish withholding tax on property transactions and federal excise duty on property sales to attract investors and revive the market.
These reforms will be discussed with the IMF to ensure they align with fiscal policies while encouraging growth. The telecom industry is also seeking a cut in withholding tax on services from 15% to 8% to enhance digital access.
Additionally, a 2.5% income tax cut for salaried individuals is being considered to ease the impact of inflation. As Budget 2025 approaches, hopes are rising for a pro-business, growth-focused economic plan.
