The proposed FY25 budget includes several measures impacting various sectors, each with its anticipated effects and commentary:


  1. Advance Tax on Vehicle Purchase/Transfer:
    • Proposal: 10% advance tax on purchase/transfer of goods and passenger transport vehicles.
    • Impact: Negative
    • Comment: Could dampen auto sales but boost government revenue.
  2. Annual Advance Tax on Vehicles Over 2000cc:
    • Proposal: Increase tax to Rs. 500,000 for non-filers and raise advance tax on vehicle purchase to 24%.
    • Impact: Negative
    • Comment: Could affect sales of larger vehicles (e.g., INDU, KIA, HYUNDAI).


  1. Advance Tax on Foreign Payments by Non-Filers via Credit Cards:
    • Proposal: Increase to 20%.
    • Impact: Positive
    • Comment: Discourages foreign spending by non-filers, broadening tax base and increasing revenue.
  2. Abolishment of Advance Tax on Foreign Payments by Filers via Credit Cards:
    • Proposal: Abolish.
    • Impact: Negative
    • Comment: Encourages foreign spending through international credit transactions.


  1. WHT on Cash Withdrawals:
    • Proposal: Raise WHT from 0.6% to 0.9% for non-filers.
    • Impact: Positive
    • Comment: Enhances government revenue and reduces cash transactions.
  2. Tax on Agriculture Income and Service Providers:
    • Proposal: Implement tax.
    • Impact: Positive
    • Comment: Diversifies revenue sources and increases fiscal capacity.
  3. Advance Income Tax on Electricity Bills for Non-Filers:
    • Proposal: Increase to 30%.
    • Impact: Negative
    • Comment: Burdens industries with higher operational costs, affecting profitability.
  4. Advance Income Tax on Large Electricity Bills:
    • Proposal: Increase to 20% for bills exceeding Rs. 200,000 monthly.
    • Impact: Positive
    • Comment: Encourages tax compliance and boosts revenues.
  5. Extra Sales Tax on Retail and Marginal Sales:
    • Proposal: Increase to 25% and 30% respectively for sales above Rs. 100,000 and Rs. 200,000.
    • Impact: Neutral
    • Comment: May increase fiscal capacity but pose implementation challenges.
  6. Advance Income Tax on Gas Bills for Non-Filers:
    • Proposal: Implement 20% tax.
    • Impact: Negative
    • Comment: Increases operational costs for industries, affecting profitability.
  7. Advance Income Tax on IT Business Clients:
    • Proposal: Implement instead of FED (75K-250K based on routes).
    • Impact: Positive
    • Comment: Discourages foreign spending and increases domestic spending.
  8. GST on Petrol and Diesel:
    • Proposal: 18% GST.
    • Impact: Negative
    • Comment: May reduce sales and increase inflation, creating tough economic conditions.

Import Oriented Sectors

  1. Advance Income Tax on Machinery Import:
    • Proposal: Increase by 1%.
    • Impact: Neutral
    • Comment: Slight impact on import costs.
  2. Advance Income Tax on Raw Material Imports:
    • Proposal: Increase by 0.5% for undertakings and 1% for commercial importers.
    • Impact: Negative
    • Comment: Raises costs for importers, reducing competitiveness.


  1. General Sales Tax on Medicines:
    • Proposal: Implement 10-18% GST.
    • Impact: Negative
    • Comment: May decrease pharmaceutical sales due to higher prices.

Real Estate

  1. WHT on Immovable Property:
    • Proposal: 0.5% on value assessed by FBR.
    • Impact: Positive
    • Comment: Increases tax revenue and discourages investment in unproductive sectors.
  2. Exemption from CGT on Immovable Property:
    • Proposal: Exempt for property held 4-6 years, with declaration at acquisition.
    • Impact: Negative
    • Comment: May reduce government revenue.
  3. Advance Tax on Sales of Immovable Property Above Rs. 450k:
    • Proposal: Increase tax to 10.5%.
    • Impact: Positive
    • Comment: Boosts tax revenue and discourages investment in unproductive sectors.


  1. Abolish 4% Further Tax on Sales to Non-Registered Persons:
    • Proposal: Abolish.
    • Impact: Positive
    • Comment: Simplifies compliance and supports steel companies’ profitability.


Experienced Senior Research Analyst



Sikander Raza, a Senior Technical Analyst



Hamza Saleem, a Senior Business Analyst



Irsa Sajjad, as a Research Analyst for Equities

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