The federal government is preparing to offer inflation-adjusted salary relief for public sector employees in the 2025–26 budget, while also focusing on steps to reduce cash-based transactions, according to official sources.
The upcoming Finance Bill 2025 is expected to include several proposals aimed at promoting transparency and curbing tax evasion. One such measure under review is a charge of up to Rs3 per litre on fuel purchased with cash at petrol stations. Officials believe this step could also help tackle fuel adulteration.
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In response to rising living costs, government workers are demanding a significant hike in salaries and allowances, with a minimum monthly wage of Rs50,000. They have warned of holding a sit-in protest outside Parliament on June 10 if their requests are ignored.
Other budget proposals include an extra 2% tax on cash sales made by manufacturers and importers, as well as additional levies on cash transactions with Tier-1 retailers. However, card payments at restaurants may continue to enjoy tax exemptions.
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To support digital payments, authorities plan to expand the use of debit and credit cards, QR codes, and mobile payment platforms at fuel stations.
Despite these reforms, no new taxes are expected for professionals such as doctors, lawyers, wedding hall operators, event planners, or jewellers.
The proposed measures highlight the government’s effort to boost digital transactions, improve tax compliance, and provide financial relief without impacting key service sectors.
