The federal government is expected to announce inflation-adjusted salary increments for the salaried class in the upcoming 2025-26 budget. The move comes amid mounting pressure from civil servants, who are demanding significant pay raises and have called for the minimum monthly salary to be increased to Rs. 50,000. If their demands are not met, government employees have threatened to stage a sit-in outside Parliament on June 10.
In parallel, the Federal Board of Revenue (FBR) is finalizing proposals aimed at discouraging cash transactions and tightening tax enforcement as part of the Finance Bill 2025. According to FBR sources, the government is considering an additional charge of up to Rs. 3 per litre on fuel purchases made with cash at petrol pumps. Manufacturers and importers may also be permitted to collect an extra 2 percent tax on cash transactions, with similar measures under review for Tier-1 retailers.
To encourage digital payments, all petrol pumps will be required to offer QR code payment options, as well as debit and credit card facilities and mobile payment services. While cash payments will still be allowed, they will come with added costs for consumers.
Despite these sweeping changes, sources confirmed that there are currently no plans to bring unit managers, jewelers, marriage halls, doctors, or lawyers into the tax net in the upcoming budget.