The federal government is reportedly planning a wide range of tax changes in the upcoming budget for the fiscal year 2025–26, with a particular focus on cash withdrawals, e-commerce, and petrol-powered vehicles.
According to officials familiar with the discussions, the government may increase the withholding tax on cash withdrawals made by individuals who are not registered tax filers. The current rate of 0.6 per cent could be doubled to 1.2 per cent, and daily withdrawals above Rs50,000 might face an additional charge. This is part of a broader effort to expand the tax base and discourage undocumented cash dealings.
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There are also talks of raising taxes on profits earned through bank deposits and savings schemes. The authorities are reviewing the possibility of applying higher rates on capital gains to support revenue targets, especially as economic pressure continues and commitments to the IMF remain in place.
For the first time, e-commerce platforms could be brought under the standard 18 per cent general sales tax (GST) regime, replacing the lower rate that currently applies to digital transactions.
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In a move tied to environmental goals, the government is considering a new tax on petrol and diesel-powered vehicles. Officials suggest this would help promote cleaner transport options like electric and hybrid cars.
Locally manufactured small cars may also see higher GST, with rates possibly rising from 12.5 per cent to 18 per cent to align with the standard rate.
Meanwhile, a reduction in the super tax on large corporations is under review. The proposal, reportedly supported by the business sector, is being examined as a possible way to encourage investment and boost job creation.