Govt. Imposes Rs. 36 Billion in New Taxes in Budget 2025

During the National Assembly Standing Committee on Finance meeting held on Sunday, the Chairman of the Federal Board of Revenue (FBR) explained the updated tax plan that forms a major part of the Budget 2025. He highlighted the government’s strategy to improve revenue collection.

The committee approved three major tax changes under Budget 2025:

• First, it imposed a 10% Federal Excise Duty on Day-Old Chicks (DOC). This increase will likely raise costs for poultry farmers.
• Second, it raised the tax rate on dividends from 25% to 29% for companies receiving income from mutual funds based on profit from debt.
• Third, it increased the withholding tax on profit from government securities from 15% to 20% for institutional investors other than individuals. This change will reduce the net returns for many financial institutions.

Furthermore, these tax changes under Budget 2025 show the government’s efforts to boost revenue without expanding the taxpayer base. While the poultry and investment sectors will feel the effects first, the measures aim to support wider fiscal stability.