A “Mini Budget” to raise Rs170 billion in income has been unveiled by the current administration.
In response to the International Monetary Fund’s (IMF) proposals to levy additional taxes on those experiencing inflation, the current government published a “Mini Budget” to raise Rs170 billion in revenue.
The standard general sales tax (GST), which is currently 17%, will be raised to 18% by the Federal Board of Revenue (FBR) in order to collect taxes totaling Rs115 billion; the remaining Rs55 billion would be earned by additional measures in connection with the Finance (Supplementary) Bill 2023.
The top tax collecting agency stated in the notification that the 18% GST will be applicable to consumer packaged goods, which includes a variety of things used on a daily basis.
The items affected by this Mini Budget are as follows;
- Edible oil
- Children’s toys
- Hair Color
- Hair remover cream
- Hair gel
- Shaving foam
- Shaving gel
- Shaving cream
- Shaving blades
- Electronic gadgets
- Other electronic machinery
- Car shampoos
- Car polishes
- Branded perfumes
The administration will raise the GST on luxury goods from 17% to 25% in addition to these measures.
On business and first-class airline tickets, Federal Excise Duty (FED) would rise by Rs20,000 or 50%, whichever is higher.
Additionally, marriage halls will be subject to a 10% withholding adjustable advance income tax. The FED on soft drinks with added sugars and the cement will also be shifted up.