Govt Plans Dual Fuel Price for Cash vs Digital Payments: Report
Get ready, Pakistan! The upcoming federal budget for the fiscal year 2025-26 is brewing some significant changes that could impact your daily spending, especially regarding fuel price and buying new cars. The government is looking to make a big push towards a “cashless economy,” and that means your digital transactions might soon get a friendly nudge!
Fuel Price: Cash vs. Card
Imagine this: you pull up to a petrol station, and you have a choice. Pay with cash, and it might cost you a little extra. Pay digitally (think QR codes, debit/credit cards, or mobile apps), and you’ll get a slightly better deal. That’s right, the government is thinking of introducing a differential tax system for cash and digital transactions, particularly in the fuel sector.
Right now, the idea is to charge the standard 18% sales tax on fuel price if you pay digitally. But if you opt for cash, you might see an additional Rs. 2-3 per liter added to your bill. This isn’t just about encouraging digital payments; it’s a smart move to streamline tax collection and bring more of the informal economy into the official fold. The Federal Board of Revenue (FBR) has been working hard to track retail businesses, and this change could really help them get a clearer picture.
To make this happen, all petrol stations across the country will soon be legally required to offer digital payment options. So, get ready to see more QR codes and card machines at your local pump!
Small Cars, Big Price Hikes?
It’s not just petrol facing changes; car buyers might also need to brace themselves. If you’ve been eyeing a new set of wheels, especially a smaller, more budget-friendly one, there’s news that might dim your excitement a bit.
Previously, there were talks about increasing the withholding tax (WHT) on cars with engines larger than 1,300cc. Now, the latest reports suggest that even smaller cars, those with engine capacities up to 850cc, might face a higher sales tax. Currently, these smaller cars enjoy a reduced sales tax rate of 12.5%. However, under the new proposal, this could jump to the standard sales tax rate of 18%.
These proposed changes are all part of the government’s efforts to modernize the economy, increase tax collection, and reduce the reliance on cash. Keep an eye out for the official budget announcement for the final details. It’s an exciting time of change for Pakistan’s economy!