ISLAMABAD (PEN) : The Government of Pakistan has unveiled its fiscal strategy for the upcoming year, projecting a substantial Rs5.147 trillion in non-tax revenue for the 2025–26 fiscal year. This ambitious target underscores the government’s reliance on non-traditional revenue streams to bolster its financial position.
Key Components of Non-Tax Revenue
The projected non-tax revenue is primarily derived from the following sources:
State Bank of Pakistan (SBP) Profits*: A significant Rs2.4 trillion is anticipated from SBP’s profits, attributed to the central bank’s monetary policies and interest rate adjustments.
Petroleum Levy*: The government expects to collect Rs1.468 trillion through the petroleum levy, reflecting an increase from previous fiscal years. 
Property Sector Revenue*: An estimated Rs519 billion is projected from the property sector, encompassing taxes and fees associated with real estate transactions.
Miscellaneous Fees*: Additional revenue of Rs29.79 billion is anticipated from various fees, including mobile levies.
Introduction of New Taxes on Digital Platforms
In a bid to enhance revenue generation, the government has introduced several new taxes targeting the digital economy:
E-Commerce Sales Tax*: An 18% sales tax will be levied on e-commerce transactions, with courier and logistics service providers responsible for collection and deposit.
Digital Services Tax*: A tax ranging from 0.25% to 5% will be imposed on digital services, including e-learning, telemedicine, and cloud computing.
Foreign Digital Payments*: Foreign online companies will incur a flat 5% tax on digital payments, encompassing websites, mobile apps, and social media platforms.
Cash-on-Delivery (COD) Services*: A tax of 0.25% to 2% is proposed on COD services provided by couriers.
These measures aim to formalize the digital economy and broaden the tax base.
Potential Impact on Youth-Led Online Businesses
While the government’s initiative to tax the digital economy is expected to increase revenue, concerns have been raised regarding its impact on youth-led online businesses. Critics argue that the new tax regime may impose additional financial burdens on emerging digital enterprises, potentially hindering their growth and innovation.
The government’s projection of Rs5.147 trillion in non-tax revenue for the 2025–26 fiscal year reflects a strategic shift towards leveraging non-traditional revenue sources. While the introduction of new taxes on digital platforms aims to enhance revenue generation, it is essential to consider the potential implications for the burgeoning digital economy and ensure that emerging businesses are not unduly burdened.
