Tax Relief for Beverage & Tobacco Industry in Budget 2025-26

The Budget 2025-26 aims to strike a balance between economic relief and tax expansion, aligning with IMF directives to strengthen revenue generation while easing financial burdens on key sectors.

The Budget 2025-26 introduces a strategic 2-3% reduction in regulatory and customs duties on over 3,500 imported items, prioritizing raw material imports for industrial and construction sectors. Additionally, proposals to abolish or reduce withholding tax on these imports aim to boost local production and lower input costs, fostering economic growth.

Tax on Agricultural Income to Expand Revenue Base

The Budget 2025-26 introduces agricultural income taxation for the first time, aiming to broaden the tax base and align with IMF-backed fiscal reforms.

The Budget 2025-26 introduces new taxes on fertilizers, pesticides, and bakery items.

Abolishing tax exemptions for the former FATA region and introducing a 12% tax.

Tax on Automobile sector

The auto sector faces a GST hike in Budget 2025-26, with locally manufactured 850cc vehicles seeing a 5.5% increase, and other locally assembled cars rising to 18% GST, potentially driving up prices.