Preliminary details of the Federal Budget 2024–25 have emerged, indicating potential price hikes for several items and reductions for others, while the government has also prepared new proposals to expand the tax base.
According to sources, locally manufactured vehicles with engines of up to 850cc are likely to become more expensive, as a proposal has been made to increase the General Sales Tax (GST) rate from 12.5% to 18%. Similarly, GST may also be imposed on bakery items, fertilizers, and pesticides, which could lead to price increases in these products.
In contrast, a reduction in taxes on cigarettes and beverages has been proposed, potentially lowering their prices. The government is also considering ending the previous policy of increasing taxes on cigarettes annually.
Major changes are also expected in the property sector. While the abolition of the Federal Excise Duty (FED) is being considered, an increase in the Capital Gains Tax (CGT) rate has been proposed.
To further widen the tax net, the government is ready to bring individuals earning through social media, YouTube, freelancing, and other digital platforms under the tax framework. In particular, additional taxes may be imposed on income earned through freelancing or social media from abroad.
Additionally, the government is reviewing a proposal to withdraw the tax exemption previously granted to the former FATA regions, with the possibility of implementing a 12% tax in those areas.
