The FY25 Budget proposals are the initial steps to broaden the tax base in Pakistan (tax to GDP is still paltry 9%). It raises taxes on some key agriculture inputs (DAP fertilizer and tractors), strives to encourage tax filing, and does attempt to tax retailers and real estate, albeit with question marks over sustainability.

The Budget removes a concessionary tax regime for the exporters (barring the services export industry e.g. IT) and introduces hefty punitive measures for non-tax........

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