In the new budget of 2026-2027, the government has reduced the tax on international transactions made through debit and credit cards from 5% to 0.5%.
The government has also abolished the capital value tax on foreign assets. The finance minister said that this step will encourage Pakistanis to bring their foreign financial assets into the formal record.
According to the finance minister, the measure will support efforts to strengthen the formal financial system and discourage undocumented transactions.
If approved by Parliament, the proposal will reduce withholding tax on international card payments by 90%, providing significant relief to consumers making online purchases and payments abroad.
