The government has unveiled significant measures in the Federal Budget 2025-26, aimed at streamlining tax policies and cracking down on tax evasion.
According to the budget details, a uniform sales tax rate of 18% will be imposed on small vehicles up to 850cc, including those previously taxed at a lower rate. This move aims to bring consistency in the sales tax structure for petrol, diesel, and hybrid vehicles.
In a major crackdown on unregistered businesses, the government has decided to impose severe penalties to ensure compliance. Key measures include:
– Freezing bank accounts of unregistered businesses
– Banning the transfer of property
– Sealing business premises and confiscating goods in cases of serious offenses
However, the concerned parties will have the right to appeal within 30 days, providing an opportunity for businesses to rectify their status.
The government has also unveiled several key proposals in the budget for the upcoming fiscal year, aimed at broadening the tax base and generating additional revenue.
According to the budget document, one of the major proposals includes increasing the tax rate on interest income by 5%, from 15% to 20%. This decision will specifically apply to passively earned income, while national savings schemes will be exempt from this tax hike.
In a bid to tap into the growing digital economy, the government has also proposed imposing taxes on online businesses. E-commerce platforms will be required to levy taxes on goods and services ordered digitally, and businesses operating on these platforms will have to submit monthly transaction data and tax reports.
