ISLAMABAD – Pakistani government is set to slap a higher rate of 25 percent sales tax on a wide range of luxury and non-essential items including cosmetics, and several edibles.
In this regard, a summary has been moved for slapping elevated general sales tax to garner an additional Rs11 billion in revenue, as the government is making desperate moves to salvage the International Monetary Fund (IMF) deal.The federal cabinet needs to approve the additional taxation that has sparked debate as weekly inflation skyrocketed to 41 percent on a year-on-year basis.
The range of items includes jewellery, aircraft and boats/ships, recreational items, aerated water and juices, auto-completely built units (CBU), sanitary and bathroom tiles, carpets, chocolates, cigarettes, confectionary items, cosmetics, tissue papers, crockery, animal food, window frames, fish, footwear, fruits and dry fruits, furniture, and homes appliances.The locally manufactured vehicles of 1,800cc and above will come under heavy taxation. Official notification is likely to be released after the final nod of the federal cabinet.
Last month, the government approved Supplementary Finance Bill 2023 to meet the preconditions placed by the International Monetary Fund (IMF) to receive the ninth tranche of loans.