ISLAMABAD: Minister Finance and Revenue Senator Ishaq Dar introduced Supplementary Finance Bill 2023 ‘mini-budget’ in National Assembly to fulfil prerequisites for unlocking $ 1.1 billion International Monetary Fund loan tranche.

Government approved to impose 25 percent GST on more than hundreds luxury items. Taxes on luxury items may increase 60 to 70 billion income to national revenue. Increase in Sales Tax from 17 to 18 percent has also been decided. One percent increase in Sales Tax will burden people more than Rs 50 billion. Federal Board of Revenue increased GST on all imported luxury items which was banned by Trade Minister few month earlier. Suggestion made to increase GST on some indigenously produced luxury items. Due to International Monitory Fund obstacles government postponed flood levy imposition.

Due to high taxes on cigarettes illegal trade is continues. It adds Rs 100 billion lose to national exchequer.  FBR immediately imposed Excise Duty on cigarettes. Notification has been made public. Rs 16,500 will be added to cigarettes of Rs 9,000. One thousand less price cigarettes will have to pay Rs 5,500 as Excise Duty.

Government wants to make agreement with IMF until today. Sales Tax will also increase on air tickets. According to notification, Sales Tax up on all packed items. Edible oil, biscuits, jam, jelly, noodles every got expensive. Children’s toys, chocolates, beverages and toffies-tax rises on everything.

Sales Tax increased to 18 percent on shampoo, cream, lotion, soaps, toothpaste, hair colors, hair remover cream, gel, hair serum along with shaving cream, shaving foam, shaving gel and shaving bladders.

Electronics including TV, LED, LCD, mobile phones, juicers, blenders, shakers and other machinery also went high price due to Sales Tax increase to 18 percent.

Vehicls’ shampoo, creams and other items taxes including perfumes prices also added 18 percent Sales Tax. Government suggested Rs 40 billion increase in budget of Benazir Income Support Programme to protect downtrodden segments of society from impact of increasing inflation.

Talking to reporters after session, Dar said that he expects bill to be passed in both houses by Monday or Tuesday as Senate Chairman Sadiq Sanjrani has “Given us till Friday”. In bid to appease IMF, government sought to roll out fiscal measure through an ordinance, but President Dr Arif Alvi advised administration to seek parliament’s consent instead. Senator Dar said PDM-led administration has fulfilled promises made to IMF by PTI-led government.

Published in The Daily National Courier, February, 16 2023

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