The Federal Board of Revenue (FBR) has issued an SRO to increase the standard 17 per cent general sales tax (GST) to 18 per cent, which will collect taxes worth Rs115 billion. The remaining Rs55 billion will be generated through other measures mentioned in the Finance (Supplementary) Bill 2023.
The top tax collection authority stated in the notification that the 18 per cent GST would be applicable to consumer packaged goods, which include various items used in everyday life.
Following the increase in GST, the following items will experience a hike in their prices:
- Biscuits
- Jam
- Jelly
- Noodles
- Edible oil
- Coffee
- Chocolates
- Make-up
- Shampoos
- Creams
- Lotion
- Soap
- Toothpaste
- Hair colour
- Hair removal cream
- Hair gel
- Shaving foam
- Shaving gel
- Shaving cream
- Shaving blades
- Computers
- Laptops
- Electronic gadgets
- Smartphones
- iPods
- TVs
- LEDs
- LCDs
- Juicers
- Blenders
- Other electronic machinery
- Car shampoos
- Car polishes
- Perfumes
- Children’s toys
In addition to the aforementioned actions, the government intends to raise the Goods and Services Tax (GST) on luxury items from 17 per cent to 25 per cent. The Federal Excise Duty (FED) on first and business class air tickets will be increased to either Rs20,000 or 50 per cent, whichever amount is higher.
Marriage halls will be subject to a ten percent withholding adjustable advance income tax, and the FED on soft drinks, sugary drinks, and cement will also be increased.
