The federal government’s annual budget proposes to take additional money to discourage all types of cash purchases, including petrol.
According to FBR sources, it has been decided to make proposals aimed at discouraging cash purchases part of the Finance Bill in the Budget 2025-26.
Sources say that a proposal to collect up to Rs 3 extra on purchasing fuel in cash from petrol pumps is under consideration. This will help in controlling tax evasion and adulteration at petrol pumps. Digital payment measures will also be taken at petrol pumps along with cash, QR codes, debit, credit cards and mobile payment measures will be taken.
FBR sources say that manufacturers and importers will be able to charge an additional 2 percent tax on cash sales. Several meetings have been held with the corporate sector to make this proposal feasible. A proposal to impose additional tax on cash purchases at shops is also under consideration, while restaurants already have a tax exemption on card payments.
According to sources, the budget will not provide much relief in terms of tax rates for the salaried class; the relief for the salaried class will be modest.
According to FBR sources, buyers will be free to make cash payments after paying higher taxes. Importers and manufacturers will be required to collect the standard 18% General Sales Tax (GST) on digital payments from their suppliers and buyers. Payments will also be facilitated through simple QR codes and other digital solutions.
Sources further stated that there is no proposal under consideration to bring unit managers, jewelers, wedding halls, doctors, and lawyers into the tax net.