Finance Minister Muhammad Aurangzeb has unveiled the Federal Budget for 2024-25, proposing a significant 75 percent tax on mobile balance recharges for non-filers.
The proposed budget, with a total outlay of Rs18.9 trillion, includes various measures designed to encourage compliance with tax regulations.
If approved, the new tax regime will come into effect on July 1, 2024. This initiative means that non-filer users will receive only Rs25 worth of balance from a Rs100 recharge, as Rs75 will be deducted as tax.
This measure is part of a broader strategy to incentivize individuals to become tax filers and support the country's economic framework.
During the budget announcement, Finance Minister Aurangzeb emphasized the importance of income tax reforms, citing the Federal Board of Revenue’s (FBR) recent strides in tax administration.
He underscored that maintaining the income tax exemption threshold at Rs600,000 annually was crucial to protect lower-income groups from additional tax burdens.
Public reaction to the proposed tax increase has been overwhelmingly negative. Many citizens have expressed frustration, arguing that the 75 percent tax on mobile recharges is excessively burdensome. Social media and public forums are abuzz with criticism, with some users humorously suggesting that they will soon start receiving "thank you" messages from their mobile carriers for paying the balance due to the high taxes.
Despite the backlash, the government maintains that these measures are essential for enhancing tax compliance and ensuring equitable contribution from all segments of society. The proposed budget will now be deliberated in the National Assembly and Senate, seeking approval to be enacted into law.
