Govt Eyes Rs. 600 Billion in New Taxes Targeting Freelancers, YouTubers, Pensioners

The federal government is planning new taxes measures worth up to Rs. 600 billion in the 2025 26 budget on the income of freelancers, vloggers, TikTokers, and YouTubers.
According to Topline Securities, a 3.5 percent tax on social media income from platforms like YouTube and TikTok is proposed. This is expected to raise Rs. 52.5 billion. A tax of 2.5 to 5 percent on pensions above Rs. 400,000 per month is also under consideration, with expected revenue of Rs. 20-40 billion. Pension spending this year has already reached Rs. 673 billion and is expected to hit Rs. 1 trillion.
GST on selected items will be aligned with market prices based on the Pakistan Bureau of Statistics data. For sugar, the GST is currently calculated at Rs. 72.22 per kilogram while the market price is Rs. 150. This adjustment may generate Rs. 70-80 billion.
A 20 percent increase in federal excise duty on processed foods like snacks and biscuits is expected, with a target of 50 percent duty by 2029. Excise duty on cigarettes may also be increased.
The government has submitted a bill to eliminate the nonfiler category. Nonfilers would be barred from buying vehicles and property. Section 114C of the Income Tax Ordinance is expected to be introduced, possibly with threshold adjustments.
A petroleum development levy on furnace oil is under review. A Rs. 5 per liter increase in levy on petrol and diesel may be introduced as a carbon tax. This could raise Rs. 35-80 billion depending on the rate applied on furnace oil.
To meet an IMF target, the government must collect Rs. 295 billion from retailers by December 2025. It may raise advance taxes on distributors to achieve this.
The IMF has proposed a 5 percent increase in federal excise duty on fertilisers and pesticides, which could generate over Rs. 30 billion.