Pakistan Proposes Carbon Tax on Fuels, to Cut Some Income Tax

Pakistan’s budget for FY26 proposes to reduce income tax rate to 2.5% from 5% on one category and to 23% from 25% for another, Finance Minister Muhammad Aurangzeb says in parliament Tuesday.

• The surcharge on salaried class earning more than 10 million rupees ($35,436) will be reduced by 1 percentage point
• The budget also proposed cut in corporate tax and levy on real estate, while raising tax on interest income to 20% from existing 15%
• Other tax proposals include:
  • Tax on online market place and e-commerce
  • Raise tax on bank withdrawals by non-taxpayers
  • Mutual fund investments in debt will be ...