Pakistan’s government has approved Rs 36 billion in new taxes as part of the Finance Bill 2025‑26, aiming to enhance revenue streams and align the tax regime with digital and luxury market trends.

Key measures include:

  • A new digital transaction levy on goods and services ordered online via banks or couriers.
  • Withholding tax increases on payments for services, along with a flat 15% rate on non-specified services.
  • Sales tax hike on luxury items, including high-end vehicles and imported electronic goods, to expand the taxable base.
  • Revised rates for digital marketplaces, increasing sales tax from 1% to 2% on cash-on-delivery and online payments.

Officials emphasize that these tax adjustments are essential to modernize Pakistan’s revenue framework, improve digital economy compliance, and fund critical public sector initiatives. The move reinforces the government’s focus on fiscal sustainability ahead of new financial assistance agreements.