Finance Minister Muhammad Aurangzeb has unveiled the Federal Budget for 2024-25, introducing a controversial 75 percent tax on mobile balance recharge for non-filers.
The budget, which has a total outlay of Rs18.9 trillion, includes various measures aimed at encouraging tax compliance.
If this proposal is approved, the new tax policy will take effect from July 1, 2024. Non-filer mobile users will only receive Rs25 from a Rs100 recharge, with Rs75 being deducted as tax. This initiative is intended to motivate more people to become tax filers.
In his budget speech, Finance Minister Aurangzeb emphasized the need for income tax reforms, highlighting recent improvements made by the Federal Board of Revenue (FBR) in tax administration.
Read More: Budget 2024-25: How much tax will you pay on your salary?
He talked about the importance of keeping the income tax exemption threshold at Rs600,000 annually to protect lower-income groups from additional taxes.
The public response to the proposed tax increase has been largely negative. Many people have expressed their dissatisfaction, calling the 75 percent tax on mobile recharges excessively harsh.
Social media and public forums have been filled with criticism, with some users joking that they might start receiving “thank you” messages from their mobile carriers due to the high taxes.
