As Pakistan gears up for its fiscal roadmap for 2025–26, the Federal Board of Revenue (FBR) is proposing new tax adjustments to boost revenue and meet International Monetary Fund (IMF) requirements.
One major proposal is the increase in the “0.25 per cent withholding tax on online platforms” engaged in buying and selling. This would directly impact major digital marketplaces like Daraz, OLX, Zameen, and PakWheels. The goal is to strengthen tax compliance in the digital economy and widen the overall tax net.
The FBR is also considering a phased withdrawal of the 10 percent super tax imposed on large corporations. This tax raised effective corporate tax rates in sectors like banking, cement, oil, and tobacco to nearly 39 percent. Officials believe that reversing it could unlock over Rs. 200 billion currently stuck in litigation.
Other incentives under review include tax relief for manufacturers and the real estate sector, such as the removal of withholding taxes on raw material imports and reduced property transaction taxes. Imported vehicles may benefit from lower duties, while locally assembled cars with engines above 1300cc could see tax hikes.
The FBR will present these proposals to Prime Minister Shehbaz Sharif on May 15, ahead of the June 2 budget announcement. Meanwhile, negotiations with the IMF are set to begin, focusing on sustainable revenue generation and fiscal reforms.