ISLAMABAD: The federal government is preparing to offer inflation-adjusted salary increases to public sector employees in the upcoming 2025–26 budget, while also introducing significant measures to reduce the use of cash transactions, official sources confirmed.
The upcoming Finance Bill 2025 is expected to include several proposals aimed at discouraging cash-based purchases to improve tax compliance and reduce economic opacity.
Among the key proposals under consideration is an additional charge of up to Rs3 per litre on fuel purchases made in cash at petrol stations — a move intended to tackle tax evasion and fuel adulteration.
Public sector employees, meanwhile, are demanding substantial raises in salaries and allowances, urging the government to set the minimum monthly wage at Rs50,000. Workers have warned of a protest outside Parliament on June 10 if their demands are not addressed in the budget.
Additional anti-cash measures being reviewed include:
- A 2% additional tax on cash sales by manufacturers and importers.
- Extra levies on cash purchases from Tier-1 retailers.
- Continued tax exemptions for debit and credit card payments at restaurants.
- Expanded promotion of digital payment methods at petrol stations, such as QR codes, bank cards, and mobile wallets.
Despite the aggressive stance against cash transactions, sources indicate there are no current plans to bring high-income professional sectors — including event managers, jewellers, doctors, and lawyers — into the formal tax net in this budget cycle.
These proposed reforms aim to enhance economic transparency, boost digital financial adoption, and expand the tax base without placing additional burdens on critical service industries.
