Government Considers Imposing Up To Rs3 Per Litre on Fuel Purchase With Cash at Petrol Stations

The federal government is considering imposing an additional charge of up to Rs3 per litre on fuel purchased with cash at petrol stations as part of its upcoming Finance Bill 2025, officials confirmed. This measure aims to curb tax evasion and fuel adulteration by discouraging cash transactions.

Alongside this, the government plans to provide inflation-adjusted salary relief to public sector employees in the 2025–26 budget. Public sector workers have meanwhile demanded a substantial hike in salaries and allowances, pushing for a minimum monthly wage of Rs50,000. They have also threatened a sit-in protest outside Parliament on June 10 if their demands remain unaddressed.

Other proposals under consideration include an additional 2% tax on cash sales by manufacturers and importers, and an extra tax on cash purchases from Tier-1 retailers.

Tax exemptions on debit and credit card payments at restaurants are expected to continue, with the government encouraging digital payment methods at petrol pumps such as QR codes, debit and credit cards, and mobile payments.

Despite the crackdown on cash transactions, sources revealed there are no current plans to extend tax regulations to event managers, jewelers, wedding halls, doctors, or lawyers in this budget.

These steps reflect the government’s efforts to increase economic transparency, promote digital payments, and widen the tax base without imposing extra burdens on key service sectors.

Read More: Budget 2025-26: Tax Hikes Expected on Bank Deposits, Savings, Cash Withdrawals for Non-Filers