The Pakistan federal budget 2025-26 announced on June 12, 2025, brings major changes for salaried employees and online shoppers in Karachi, Lahore, Islamabad, and across Pakistan. Here's exactly how much more or less you'll pay.

Pakistan Budget 2025 Income Tax Changes

The government reduced income tax for middle-class families but increased indirect taxes. Here's what changed:

New Income Tax Slabs 2025-26

Annual IncomeTax Rate 2025-26 Previous RateMonthly Savings
Rs. 0 - 600,0000%0% No change
Rs. 600,001 - 1,200,0002.5%5% Rs. 200-800
Rs. 1,200,001 - 2,200,00012.5%15% Rs. 500-1,500
Rs. 2,200,001 - 3,200,00022.5%25% Rs. 1,000-2,000

Online Shopping Tax Pakistan 2025

New e-commerce taxes affect all online purchases in Pakistan:

Digital Transaction Tax Rates

  • General online shopping: 1% on purchases above Rs. 5,000
  • International shopping: Additional 2%
  • Electronics and luxury items: 3% total tax
  • Payment processing fee: 0.5% on all digital payments

Online Shopping Tax Examples

Buy mobile phone Rs. 50,000 online:

  • Product price: Rs. 50,000
  • Electronics tax (3%): Rs. 1,500
  • Payment fee (0.5%): Rs. 250
  • Total cost: Rs. 51,750

Buy clothes Rs. 10,000 online:

  • Product price: Rs. 10,000
  • Shopping tax (1%): Rs. 100
  • Payment fee (0.5%): Rs. 50
  • Total cost: Rs. 10,150

Increased Costs in Budget 2025

Higher Sales Tax on Daily Items

  • Mobile bills: 19.5% (increased from 17%)
  • Internet packages: 19.5%
  • Packaged foods: 18%
  • Personal care products: 18%
  • Household items: 18%

Utility Cost Increases

  • Electricity tariff: 3-5% increase
  • Gas prices: 8-10% higher
  • Petrol: Rs. 2 per liter increase

Real Impact on Pakistani Families

Karachi Family Example (Salary Rs. 100,000/month)

  • Income tax savings: Rs. 1,000/month
  • Higher utility bills: Rs. 800/month
  • Online shopping costs: Rs. 300/month
  • Net benefit: Rs. 100/month

Lahore Family Example (Salary Rs. 60,000/month)

  • Income tax savings: Rs. 400/month
  • Higher utility bills: Rs. 600/month
  • Online shopping costs: Rs. 200/month
  • Net cost: Rs. 400/month

Islamabad Family Example (Salary Rs. 150,000/month)

  • Income tax savings: Rs. 1,800/month
  • Higher utility bills: Rs. 1,000/month
  • Online shopping costs: Rs. 400/month
  • Net benefit: Rs. 400/month

Money Saving Tips for Budget 2025

Smart Shopping Strategies

  1. Compare online vs local prices including taxes
  2. Buy electronics from physical stores to avoid 3% tax
  3. Use local payment methods when possible
  4. Shop in bulk from local markets

Tax Planning Tips

  1. Save income tax benefits immediately
  2. Join savings committees with monthly contributions
  3. Build emergency fund with tax savings
  4. Invest in energy-efficient appliances

Frequently Asked Questions (FAQs)

How much income tax will I pay in Pakistan 2025?

Use our salary tax calculator above. Most people earning Rs. 600,000-2,200,000 annually will pay less tax than before.

What is the online shopping tax rate in Pakistan 2025?

1% on purchases above Rs. 5,000, plus 0.5% payment processing fee. Electronics have 3% total tax.

Which cities are affected by budget 2025 tax changes?

All cities in Pakistan including Karachi, Lahore, Islamabad, Faisalabad, Multan, and Rawalpindi.

When do new tax rates start in Pakistan?

July 1, 2025 - the start of fiscal year 2025-26.

How to calculate my new salary after budget 2025?

Use our free salary tax calculator or multiply your annual income by the new tax slab rates.

Will mobile phone bills increase in budget 2025?

Yes, mobile and internet bills now have 19.5% tax instead of 17%.

Who Benefits from Budget 2025-26?

Winners

  • Salaried class earning Rs. 600,000-2,200,000 annually
  • People who shop locally instead of online
  • Families in smaller cities with lower utility usage

Losers

  • Heavy online shoppers
  • High earners above Rs. 3,200,000 annually
  • Businesses with high digital transactions

Action Plan for Budget 2025

Week 1: Calculate Your Impact

  1. Use our salary tax calculator
  2. Calculate your typical online shopping tax
  3. Estimate higher utility costs

Week 2: Adjust Your Budget

  1. Reduce online shopping by 15-20%
  2. Find local alternatives for regular purchases
  3. Plan for higher mobile/internet bills

Week 3: Save Tax Benefits

  1. Open separate savings account for tax savings
  2. Join a committee if getting tax benefits
  3. Build emergency fund

Week 4: Optimize Spending

  1. Compare all purchases: online vs local
  2. Switch to energy-saving appliances
  3. Review mobile/internet packages

Bottom Line: Budget 2025 Pakistan

For most middle-class families: Small net benefit or neutral impact Key strategy: Use income tax savings to offset higher shopping and utility costs Best approach: Calculate your specific impact and plan accordingly

The Pakistan budget 2025-26 helps salaried employees but increases indirect taxes. Smart planning can help you come out ahead.

Free Tools:

  • [Pakistan Income Tax Calculator 2025-26]
  • [Online Shopping Tax Calculator]
  • [Monthly Budget Planner for New Tax Year]

Related Articles:

  • Income tax slabs Pakistan 2025-26 complete guide
  • Online shopping tips to avoid high taxes
  • How to save money in budget 2025 Pakistan

Share this guide: Help other Pakistani families understand budget 2025 impact

Last updated: June 2025 | Source: Federal Board of Revenue Pakistan

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