Islamabad, June 2, 2025: The federal government is set to introduce a differential tax system for cash and digital transactions in the upcoming Budget 2025–26, focusing heavily on fuel purchases and business transactions.
all petrol stations across Pakistan will be legally required to provide digital payment options including QR codes, debit/credit cards, and mobile wallets. This initiative is part of Finance Minister Muhammad Aurangzeb’s broader vision for a cashless economy.
Key Highlights:
- Additional Rs2–3 per liter to be charged on fuel purchases made in cash.
- Standard 18% GST on digital transactions for fuel purchases.
- Extra 2% GST on cash transactions by importers and manufacturers.
- FBR will mandate digital payment systems nationwide to improve documentation and reduce the informal economy.
- All businesses will be required to offer both cash and digital options, with extra tax applied to cash payments.
- Simple, low-cost digital solutions like QR codes will be promoted to make compliance easier.
- Inspired by successful models in India, Indonesia, and Bangladesh, the move aims to replicate similar results in Pakistan.
- The plan is part of a larger strategy to combat tax evasion, smuggling, and fuel adulteration, which causes annual losses of Rs300–500 billion.
- Over Rs9.3 trillion in cash circulation could potentially be brought into the formal economy through digitization.
FBR Chairman Rashid Mehmood Langrial confirmed the government’s commitment to transitioning towards a digital economy but refrained from disclosing more details ahead of the budget presentation.
Read More: Bookings Open for Islamabad IT Park Ahead of August 14 Launch
This bold shift marks a critical step in the government’s effort to modernize the economy, boost transparency, and enhance tax compliance across all sectors.
Read More: Rawalpindi to Quetta Train Service: Schedule, Fare, Booking & Travel Guide 2025
