The federal budget for the fiscal year 2025–26 is finally out, and as expected, it’s got everyone talking. While some are calling it a step in the right direction—with tax relief for salaried individuals and a focus on digital regulation—others are raising eyebrows over rising fuel costs and new levies.
Love it or hate it, the new budget will impact your wallet, your shopping habits, and even how you get around.
Here are 3 key things you really need to know from this year’s budget.
1.Online Shopping Just Got Pricier in Pakistan—Here’s Why
The government has introduced new taxes that will make online shopping more expensive for people in Pakistan. These taxes apply to both local (Pakistani) and foreign (international) e-commerce websites like Daraz, Amazon, AliExpress, and Temu.
What’s Changing for Local Online Shopping?
If you shop on a local website or app, you’ll now have to pay extra tax depending on how much you spend and how you pay for it:
- If you pay online (digital payment):
- Spend up to Rs10,000 → 1% tax
- Spend between Rs10,000–Rs20,000 → 2% tax
- Spend more than Rs20,000 → 0.25% tax
- If you choose Cash on Delivery (COD):
- For electronics, you’ll be charged 0.25% tax
- For clothing, the tax is 2%
- For everything else, it’s 1%
This extra money will either be added to your payment at checkout (if you pay online) or collected by the delivery person when your order arrives (if you choose COD). The tax will be handled by banks, payment apps, ride-hailing services, and delivery companies like food apps or courier services.
What About International Online Shopping?
If you order something from a foreign website like Amazon, AliExpress, or Temu, you’ll now be charged 5% extra on your total bill. This tax will automatically be added when you pay through your card or bank.
Also, if these international websites don’t pay the required taxes, customs will stop the delivery of your order unless the courier company proves that the tax was paid.
Social Media Ads Are Being Taxed Too
If these foreign online stores run ads on platforms like Facebook, Instagram, or Google to target Pakistani customers, they’ll be charged 5% tax on the money they spend on those ads.
Platforms like Meta and Google will need to submit quarterly reports showing how much tax they collected. If they fail to do so, they could be fined Rs1 million every 3 months.
2.Salaried People, Here’s How the New Budget Affects Your Paycheck
If you’re working a job and getting a salary in Pakistan, here’s what’s changing for you when it comes to income tax in the new budget:
What’s Staying the Same?
- If you earn up to Rs50,000 per month (that’s Rs600,000 per year), you won’t be taxed—same as before.
Tax Relief for Lower & Middle Income
The government is reducing the tax rates for people earning up to Rs3.2 million per year, so your monthly take-home salary may go up.
Here’s a breakdown:
- If you earn Rs600,000–Rs1.2 million per year (Rs50,000–Rs100,000/month):
- Your tax rate drops from 5% to just 1% → That’s an 80% drop in tax!
- If you earn Rs1.2 million–Rs2.2 million per year (Rs100,000–Rs183,000/month):
- Tax on income above Rs1.2m drops from 15% to 11%
- Fixed tax reduced from Rs30,000 to Rs6,000
- For someone earning Rs150,000/month, this means almost 48% less tax
- If you earn Rs2.2 million–Rs3.2 million per year (Rs183,000–Rs267,000/month):
- Tax on income above Rs2.2m reduced from 25% to 23%
- Fixed tax drops from Rs180,000 to Rs116,000
What About Higher Salaries?
- If you earn between Rs3.2 million–Rs4.1 million/year:
- No change in tax rate (still 30% on income above Rs3.2m)
- But fixed tax drops from Rs430,000 to Rs346,000
- If you earn more than Rs4.1 million/year:
- Tax rate still 35% on income above that amount
- Fixed tax drops from Rs700,000 to Rs616,000
Other Changes
Pensioners earning more than Rs10 million/year will now have to pay 5% tax, even though they’re retired.
A 1% reduction in surcharge (extra tax) for people earning above Rs10 million/year—this is meant to stop highly skilled people from leaving the country.
3. Fuel Prices Set to Rise Again: Here’s What You Need to Know
Starting July 1, 2025, the government of Pakistan will start charging a new tax called the “Carbon Levy” on fuel like petrol, diesel, and furnace oil.
What’s the Carbon Levy?
- It’s a new tax of Rs2.5 per litre on petrol, diesel, and furnace oil.
- This tax will increase to Rs5 per litre in the following year (2026–27).
But That’s Not All…
This new Carbon Levy is on top of the existing Petroleum Development Levy (PDL), which is already super high:
- PDL on Petrol: Rs78 per litre
- PDL on Diesel: Rs77 per litre
So basically, you’re already paying a heavy tax—and now there’s more coming.
What’s the Current Price of Fuel?
As of June 1, 2025, fuel prices are:
- Diesel: Rs254.64 per litre
- Petrol: Rs253.63 per litre
These prices change twice a month depending on global oil rates.
What do you think?
