ISLAMABAD: The federal government has actually raised the sales tax from 17 percent to 25pc on 33 classifications of products covering 860 tariff lines, high-end smart phones, imported food, design products, and other high-end products.
The Federal Board of Revenue (FBR) late on Wednesday night provided SRO297 of 2023 to execute the tail end of the Rs170 billion tax income procedures to open the IMF tranche.
The federal government has actually already alerted the tax procedures in 2 stages — i.e. on Feb 14 and March 1.
Home devices, leisure products, family pet food, and so on, to cost more
The high-end products that will go through 25pc sales tax in the classification of food import consist of confectionery, jams and jelly, fish and frozen fish, sauces, catsup, fruits and dry fruits, maintained fruits, cornflakes, frozen meat, juices, pasta, oxygenated water, ice cream, and chocolates.
Vehicles in totally built-up systems (CBU) conditions, hygienic and bathoom products, home devices, cosmetics, dishware, family pet food, personal weapons and ammo, shoes, chandeliers and lighting (other than energy savers), earphones and speakers, windows and doors frames, taking a trip bags and travel suitcases, hygienic ware, carpets (other than from Afghanistan), tissue paper, furnishings, hair shampoos, high-end bed mattress and sleeping bags, restroom ware, toiletries, heating systems, blowers, sunglasses, kitchenware, cigarettes, shaving products, high-end leather garments, musical instruments, saloon products like hair clothes dryers, and so on., and decoration/ornamental posts.
The high sales tax will likewise use to dog and cat food, a ship created or adjusted for usage for leisure or enjoyment or personal usage, an airplane created or adjusted for usage for leisure or enjoyment or personal usage, and posts of jewellery and watches.
The GST was likewise raised to 25pc on the supply of in your area produced products — in your area produced or put together SUVs and CUVs, in your area produced or put together lorries having engine capability of 1,400cc and above and in your area produced or put together double-cabin (4×4) pick-up lorries.
Finance Minister Ishaq Dar last month through the Finance (Supplementary) Bill 2023 presented tax procedures to raise an extra Rs170bn in the next 4 and a half months to satisfy the last previous actions concurred upon with the IMF to secure early dispensation of about $1.2bn instalment.
Two procedures — raising the federal import tax responsibility on cigarettes and increasing the basic sales tax rate from 17pc to 18pc — were executed through SROs on Feb 14.
Other procedures were executed from March 1 right after the assent of the Finance Act 2023 by President Dr Arif Alvi.
Published in Dawn, March 9th, 2023
