Through the mini-budget, the government plans to roll back tax exemptions worth Rs350 billion which will result in several items getting expensive, reports Samaa.
The budget and the State Bank of Pakistan (SBP) Autonomy Bill are set to be tabled on Thursday in Parliament. According to officials, these changes are being done at the demands of the International Monetary Fund (IMF).
Mobile phones, stationery items, packaged foods and makeup items are likely to get expensive as tax exemptions would be withdrawn after almost two months of its implementation.
The tax on the import of luxury items will also be raised. However, prices of several items are likely to remain unchanged i.e. food items and medicine. A temporary or permanent ban or hiking sales tax from 12.5 percent to 17 percent on imported vehicles is also proposed.
The tax collections target for the coming year is also being raised to Rs6100 billion from Rs5829 billion.
Earlier, it was reported that government might pass the budget through a presidential ordinance. But IMF rejected this government’s proposal and insisted on legislation through the Parliament.
The exemptions need to be reverted before the IMF’s executive board meeting on January 12.
