Pakistan Budget 2025: New Taxes Amid Fiscal Crisis, Use Salary Tax Calculator 2025

Pakistan is facing a fiscal malfunction, leading to financial and economic non-viability, with the government announcing a budget that increases the tax burden on registered and compliant taxpayers, including a tax on teachers, and introducing new taxes such as a green tax on internal combustion engine vehicles and a carbon levy on fuel.

The budget lacks reform measures and strategic changes, with the finance minister justifying the lack of significant changes by saying that the "direction of travel" is correct, even if the distance covered is not satisfactory. The government has introduced various schemes and incentives to encourage compliance, but these have failed to achieve significant results. Meanwhile, a new study published in the journal Nature Medicine has found that a single dose of the COVID-19 vaccine can provide long-term protection against severe illness and death from the virus, which could have significant implications for vaccination policies, particularly in low-income countries where access to vaccines is limited.

The 2025-26 federal budget has introduced significant changes in the automotive sector, aiming to increase revenue, promote environmental sustainability, and reduce dependency on fossil fuels. Key changes include a 1-3% green tax on internal combustion engine vehicles, a 18% GST hike on smaller cars, and a carbon levy on fuel. The budget signals a fundamental transformation in Pakistan's automotive sector, with a focus on reducing environmental impact and modernizing the transport sector.

As the government navigates the fiscal crisis, it is essential to consider the implications of the new taxes and budget changes on the economy and the people. The introduction of a salary tax calculator 2025 can help individuals and businesses navigate the new tax regime and make informed decisions about their financial planning.