Significant Tax Proposed on Mobile Balance Recharges
Measure is part of broader strategy to incentivise individuals to become tax filers
Tariq Ali 
Islamabad: Finance Minister Muhammad Aurangzeb has revealed the Federal Budget for 2024-25, proposing a substantial 75 percent tax on mobile balance recharges for non-filers.
With a total outlay of Rs18.9 trillion, the proposed budget aims to foster tax compliance through various measures.
Scheduled to take effect on July 1, 2024, the new tax plan implies that non-filers will retain only Rs25 from a Rs100 recharge, as Rs75 will be deducted as tax.
This initiative forms part of a broader strategy to incentivize tax filing and bolster the country's economic structure.
During the budget presentation, Finance Minister Aurangzeb highlighted the significance of income tax reforms, acknowledging the Federal Board of Revenue’s (FBR) efforts in tax administration.
He stressed the importance of maintaining the income tax exemption threshold at Rs600,000 annually to safeguard lower-income groups from additional tax burdens.
Public response to the proposed tax hike has been predominantly critical. Many citizens have voiced dissatisfaction, arguing that the 75 percent tax on mobile recharges is excessively burdensome. Social media platforms and public forums are filled with criticism, with some users humorously predicting "thank you" messages from mobile carriers for paying such high taxes.
Despite the backlash, the government asserts that these measures are necessary to enhance tax compliance and ensure fair contributions from all sectors of society.
The proposed budget will now undergo deliberation in the National Assembly and Senate for approval to become law.
