ISLAMABAD: The federal government is planning to introduce steps in the upcoming budget 2025-26 to promote digital payments and reduce cash transactions.
Media reports said that one of the proposals under consideration is to charge up to Rs3 extra on buying petrol with cash at fuel stations. The aim is to discourage cash payments and encourage people to use digital methods.
To support this move, fuel stations will be equipped with digital payment options such as QR codes, debit and credit cards, and mobile wallets.
Reports further said that if the proposal is approved, manufacturers and importers will also be allowed to charge an extra 2% tax on cash sales. Similar taxes may also be applied on cash purchases at shops.
Meetings have already been held with the corporate sector to make this plan workable.
Currently, restaurants offer tax benefits to customers who pay by card. However, the budget is not expected to bring much relief for salaried individuals. Sources said any relief in income tax for this group will be minor.
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Buyers will still have the option to pay in cash, but they will have to bear the extra charges.
Additionally, importers and manufacturers will be required to collect the standard 18% General Sales Tax (GST) on digital payments from their suppliers and buyers. These payments must be made through simple digital methods such as QR codes.
In another development, the government has proposed keeping the GDP growth target at 4.2% in the upcoming budget. According to finance ministry documents, the agriculture sector’s growth target is set at 4.5%, while the industrial sector aims for 4.3%.
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The manufacturing sector’s growth target is 4.7%, with large industries aiming for 3.5% and small industries for 8.9%. Key crops are expected to grow by 6.7%, other crops by 3.5%, and cotton ginning by 7%. Livestock growth is targeted at 4.2%.
Other sector growth targets include forestry at 3.5%, fishing at 3%, slaughtering at 4.3%, electricity, gas, and water supply at 3.5%, and construction at 3.8%.
The services sector growth target is 4%, wholesale and retail trade 3.9%, transport and communication 3.4%, hotels and restaurants 4.1%, and information and communication technology 5%.
