Connect with us

Hi, what are you looking for?


FY2024-25 Budget: Pakistan Set to Cease Sales and Income Tax Exemptions

FY2024-25 Budget

ISLAMABAD: According to sources, the Pakistan government is gearing up to implement significant changes in the fiscal year 2024-25 budget, primarily under pressure from the International Monetary Fund (IMF).

One of the key proposals includes the cessation of tax exemptions, particularly in sales and income tax, in alignment with IMF demands.

Under the proposed budget for FY2024-25, Pakistan is poised to phase out exemptions on sales and income tax.

Additionally, the government is contemplating the imposition of sales tax on essential agricultural commodities like tractors and pesticides.

If implemented, this measure could potentially trigger price hikes for these crucial agricultural inputs, exerting financial strain on farmers.

Presently, pesticides and their active ingredients registered by the Department of Plant Protection enjoy exemption from sales tax under the Sixth Schedule of the Sales Tax Act.

Similarly, tractors, including road tractors for semi-trailers, are zero-rated for sales tax. However, discussions among budget planners revolve around revoking these exemptions and introducing a reduced rate of sales tax on tractors and pesticides in the upcoming fiscal year.

The proposed changes are anticipated to have a profound impact on the agricultural sector, with farmers likely to bear the brunt of increased costs for equipment and pesticides, thereby heightening financial burdens on agricultural activities.

Furthermore, commercial importers are expected to face withhold tax in the upcoming budget, a move projected to yield an additional Rs30 billion in tax revenue.

Meanwhile, the IMF has emphasized the necessity for Pakistan to undertake substantial cost-side reforms to address the inherent challenges plaguing the country’s energy sector and restore its long-term viability.

These reforms are deemed crucial for achieving fiscal sustainability and economic resilience in Pakistan.

Written By

I am a dynamic professional, specializing in Peace and Conflict Studies, Conflict Management and Resolution, and International Relations. My expertise is particularly focused on South Asian Conflicts and the intricacies of the Indian Ocean and Asia Pacific Politics. With my skills as a Content Writer, I serve as a bridge between academia and the public, translating complex global issues into accessible narratives. My passion for fostering understanding and cooperation on the national and international stage drives me to make meaningful contributions to peace and global discourse.


Indian actor and model Sonam Bajwa, celebrated for her open appreciation of Pakistani talent, once again grabbed headlines for her admiration of cross-border celebrities....


Pakistani trailblazers Ammara Sharif and Dr. Sana Jamil are poised to make history as the first female duo from Pakistan to conquer the daunting...


ISLAMABAD: Pakistan has decided to restrict foreign travel for non-filers, with exceptions for those traveling for Hajj, Umrah, or educational purposes, as the country...

Art & Culture

KARACHI: Elisabeth Foley says, “The most beautiful discovery true friends make is that they can grow separately without growing apart.” Keeping its traditions alive,...