ISLAMABAD – The federal government is considering a slew of measures to discourage cash purchases of all kinds, including petrol, by imposing additional charges in upcoming Budget 2025-26.
Reports said the proposals aimed at discouraging cash transactions will be included in the Finance Bill for the 2025–26.
One such proposal under consideration is to impose an additional charge of up to Rs3 on cash petrol purchases.
This step aims to curb tax evasion and fuel adulteration at petrol pumps. Measures to promote digital payments at fuel stations are also planned, including the use of QR codes, debit/credit cards, and mobile payments.
The reports further said manufacturers and importers will be allowed to charge an additional 2 percent tax on cash sales.
Several meetings have already been held with the corporate sector to make this proposal viable. A similar additional tax on cash purchases at retail shops is also under consideration, while restaurants already enjoy tax exemptions on card-based payments.
Salaried individuals should not expect significant tax relief in the upcoming budget as the federal government is trying to convince the International Monetary Fund (IMF).
Reports said the buyers will be able to pay in cash but will have to bear higher taxes. Importers and manufacturers will be required to collect the standard 18% General Sales Tax (GST) on digital payments from their suppliers and customers.
Payments will be facilitated through simple QR codes and other digital solutions.
Budget 2025-26 Date
The government has confirmed that the federal budget for fiscal year 2025-26 will be presented on June 10, rejecting the speculation of any postponement due to Eidul Adha holidays.
Last week, Federal Finance Secretary Imdad Ullah Bosal told reporters after a National Assembly committee meeting that the budget date remained unchanged, though the National Economic Council (NEC) meeting date might be revised.
