Govt eliminates tax exemptions for merged districts of Balochistan, KP

Phased Sales Tax Introduced for Merged Districts, 10% in First Year

ISLAMABAD – The federal government has decided to eliminate tax exemptions for the merged districts of Balochistan and Khyber Pakhtunkhwa in the new fiscal year 2025-26 budget.

Federal Finance Minister Muhammad Aurangzeb presented the budget and stated that tax exemptions previously granted to the merged districts of Khyber Pakhtunkhwa and Balochistan have been abolished in the upcoming budget.

In his budget speech, he explained that a phased sales tax will be imposed on businesses in the merged districts over the next five years. For the upcoming fiscal year, a 10% sales tax will be imposed on businesses in the merged districts.

Read more: Budget 2025-26: 18% tax imposed on imported solar panels

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