The federal government is considering a new local tax for residents of Islamabad. The proposal is linked to plans for a separate administrative status for the capital.
Sources in the Ministry of Finance said the tax could help finance public services. The revenue would also support the proposed administrative system in the capital.
Under the proposal, funds collected through the tax would remain within Islamabad. The money could support hospitals, schools, welfare programs and infrastructure.
The government has not yet decided the exact amount of revenue required. Officials are still assessing the financial needs of the proposed setup.
The proposed tax is expected to be included in the next federal budget. However, several steps must be completed before a final decision.
A subcommittee is currently expected to examine taxation matters related to Islamabad. The committee will review the possible financial impact of the proposed change.
After the subcommittee completes its work, the proposal will move to another committee. Planning Minister Ahsan Iqbal is expected to lead that committee.
The proposal would then be presented to Prime Minister Shehbaz Sharif. The government will consider the recommendations before making a final decision.
The International Monetary Fund (IMF) is also expected to discuss the proposal. The matter could come up during the IMF’s upcoming review talks with Pakistan.
Officials are likely to assess how the proposed tax could affect residents. They may also examine whether the revenue would be enough for local services.
The government has not announced a final tax rate or collection mechanism. Details will depend on further financial and administrative assessments.
The proposed change could give Islamabad greater control over funding public services. However, the financial structure would need careful planning.
The government is also expected to consider the broader costs of running the capital. These costs could include healthcare, education, welfare and development projects.
The proposal remains under review and does not represent a final tax decision. Any new levy would require approval through the relevant government process.
The IMF’s response could also influence the government’s final position. Officials are expected to discuss the financial implications during the review process.
For now, residents of Islamabad do not face an immediate new tax under this proposal. The government must first complete its internal review.
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A final decision is expected after consultations with the IMF and relevant government committees. Further details may emerge as work on the proposal continues.
