Government Plans Rs3 Per Litre Extra Charge on Cash Fuel Payments

The federal government plans to introduce inflation-adjusted salary relief for public sector employees in the upcoming 2025-26 budget, officials confirmed. At the same time, major measures aimed at reducing cash transactions are also being considered.

The Finance Bill 2025 is expected to propose a surcharge of up to Rs3 per litre on fuel purchases made with cash at petrol stations. This step is intended to curb tax evasion and prevent fuel adulteration.

Public sector workers have demanded significant salary and allowance increases, including raising the minimum monthly wage to Rs50,000. They have warned of a sit-in protest outside Parliament on June 10 if their demands are not addressed.

Additional measures under review include a 2% tax on cash sales by manufacturers and importers, as well as extra taxes on cash purchases from Tier-1 retailers. Meanwhile, tax exemptions on debit and credit card payments at restaurants are set to continue, alongside efforts to promote digital payments at petrol pumps through QR codes, cards, and mobile services.

Despite the crackdown on cash, there are no current plans to extend tax regulations to event managers, jewellers, wedding halls, doctors, or lawyers in the upcoming budget.

These reforms highlight the government’s focus on increasing economic transparency, encouraging digital payments, and expanding the tax base, while avoiding added pressure on key service sectors.

Source: Web Desk