The National Assembly has passed significant amendments under the Finance Bill 2025, introducing various changes to the Income Tax Ordinance 2001 and tax policies.
Below are the key highlights:
Solar panel tax
General Sales Tax (GST) on solar panels has been fixed at 10%..
Income tax slabs for salaried individuals
Annual income up to Rs600,000: Exempt from income tax.
Income above Rs600,000: Subject to 1% tax.
Income between Rs1.2 million and 2.2 million annually:
Rs6,000 fixed tax
Plus 11% tax on the excess amount.
Sales tax fraud & enforcement reforms
Amendments approved to criminalize tampering with sales tax data.
Erasing evidence of tax evasion will now be considered fraud.
Inquiries into sales tax fraud will no longer remain confidential.
Companies accused of sales tax fraud must receive three formal notices before prosecution.
Withholding tax on property sales (Effective July 1, 2025)
Properties sold up to PKR 50 million: 4.5% withholding tax
Properties sold between PKR 50 million to PKR 100 million: 5% withholding tax
This reflects a 1.5% increase in the previous rates.
These tax measures are part of the government’s effort to broaden the tax base, reduce fraudulent activity, and increase revenue without drastically burdening low-income individuals.
