LAHORE: Punjab’s budget for the upcoming fiscal year is expected to be tax-free, according to sources in the provincial Finance Department.
Sources said the government is likely to set a tax collection target of around Rs712 billion for the next financial year. The largest share of revenue is expected to come from the General Sales Tax (GST) on services, with projected collections of Rs320 billion.
According to the estimates, excise duty is expected to generate Rs128 billion, while stamp duty and registration fees may contribute Rs90 billion. Revenue from sales tax is projected at Rs82 billion, and motor vehicle tax collections are expected to reach Rs47 billion.
Sources further said taxes and duties related to electricity are expected to generate Rs35.2 billion, while land revenue collections are estimated at Rs1.7 billion.
The proposed budget is also expected to allocate more than Rs550 billion for the transport sector and local governments.
According to Finance Department sources, the provincial government plans to continue subsidy programs for farmers, students, and workers. Farmers are likely to receive subsidies on tractors, solar-powered tube wells, low-cost seeds, and agricultural loans for fertilizers.
The sources added that student welfare initiatives, including the Honhaar Scholarship Program and the Electric Bike Scheme, are expected to continue in the next fiscal year.
In addition, the government is likely to maintain its policy of allocating at least 35 percent of development funds to projects in South Punjab.
Also Read: Budget 2026-27: Govt signals no new taxes
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