As part of the new budget, a standardized sales tax rate of 18% will now apply to small vehicles up to 850cc, including models that were previously subject to lower tax rates.

This change is intended to create a more consistent tax framework across petrol, diesel, and hybrid vehicles.

To enforce tax compliance, authorities plan a strict crackdown on unregistered businesses. Measures include:

Freezing the bank accounts of non-compliant entities

Prohibiting property transfers

Sealing business locations and seizing inventory in serious cases

Businesses facing such actions will retain the right to appeal within 30 days, giving them a chance to regularize their status.

Also Read: Rs17.5 trillion budget revealed amid opposition protests

Additionally, the budget outlines several initiatives to widen the tax net and boost revenue. One key proposal is a 5% increase in the tax on interest income, raising it from 15% to 20%. However, this hike will not apply to returns from national savings schemes.

To address the growing digital marketplace, the government also plans to tax online businesses. E-commerce platforms will be required to collect taxes on digital orders and submit detailed monthly transaction and tax data.