Budget 2025-26: New Revenues Amid 3D Printing Innovations
The budget 2025-26 is expected to include new tax measures, including hikes in withholding tax rates and a new tax on solar panels, as well as relief for the salaried class in lower tax slabs, highlighting the government's efforts to balance revenue targets with social and economic considerations.
The Shehbaz Sharif-led coalition government is preparing a new budget with a record revenue target of nearly Rs14 trillion for FY26, as a 3D-printed house unveiled in Russia showcases innovative construction methods that could address housing shortages and poverty.
The 3D-printed house, created using a giant 3D printer, took 24 hours to print and has two bedrooms, a living room, and a kitchen. The company behind the project, 3D Printing Solutions, plans to use the technology to build affordable housing for low-income families, highlighting the potential for technological innovations to address social and economic issues.
In contrast, the Pakistani government faces challenges in meeting tax collection targets, with doubts persisting over its ability to enforce existing tax laws effectively. The government is shifting from "broadening the tax base" to "equity" as a justification for higher taxes on lower-income segments, which could result in hikes in withholding tax rates and targeting dividends, stock markets, and other financial transactions.
The Federal Board of Revenue (FBR) intends to implement a new concept of transactions using banking instruments, applying lower tax rates to digital transactions and higher rates to cash-based ones. The government is also expected to introduce new taxes, including a tax on solar panels, processed food items, and a carbon tax, which could have implications for clean energy adoption and consumer prices.
As the government prepares the budget 2025-26, it must balance the need for new revenues with the potential impact on different segments of society, including the salaried class and low-income families, while also considering the potential for technological innovations like 3D printing to address some of the country's most pressing social and economic challenges.