The National Assembly has approved the federal budget for the fiscal year 2025–26, totaling Rs. 17.6 trillion. The newly passed legislation includes Rs. 463 billion in additional taxation measures targeting various sectors of the economy.

 Key Tax Reforms:

• Digital economy taxed: New levies on streaming services, foreign vendors, e-commerce platforms, and cash-on-delivery transactions.
• Petrol & diesel: A climate levy of Rs. 2.5 per litre has been imposed.
• Automotive sector: A 1–3% tax introduced on fuel-based vehicles to fund EV subsidies.
• High pensions: Annual pensions above Rs. 10 million to face a 5% tax.
• Solar imports: Imported solar panels will now incur a 10% sales tax.

 Enforcement & Exemptions:

• Restrictions for non-filers now apply only to high-value assets—residential properties over Rs. 50 million, commercial properties exceeding Rs. 100 million, and vehicles above Rs. 7 million.
• Cash withdrawal limits for non-filers capped at Rs. 100 million annually; stock market restrictions apply to investments over Rs. 50 million.
• A 15-year holding exemption introduced for individuals selling residential property.

Fiscal Priorities:

• Rs. 8.2 trillion allocated for interest payments—the budget's largest component.
• Defence spending set at Rs. 2.55 trillion, excluding pensions and development expenditures.
• Government operations and development allocations total Rs. 917 billion.

Additional revisions include increasing the income tax on mutual fund debt portions (from 25% to 29%) and adjusting tax on government loan returns from 15% to 20%.

Coalition members backed the bill following agreements such as an exemption for salaried individuals earning up to Rs. 100,000 per month.

The Finance Act 2025 takes effect on July 1st, 2025.