ISLAMABAD: National Assembly passed Finance (Supplementary) Bill 2023 proposing additional taxes and duties of Rs 170 billion to meet conditions set by International Monetary Fund (IMF).

Under finance supplementary bill, government decided to increase General Sales Tax (GST) from 17 percent to 18 percent. It has been decided to hike GST on luxury items from 17 percent to 25 percent.

For air travel, it has been proposed that fixed amount of Federal Excise Duty ranging from Rs 250,000 to Rs 75,000 of different tiers as per International Air Transport Association (IATA) on airfare for first, business and club classes should be imposed. Moreover, 10 percent withholding adjustable advance tax will be levied on bills of wedding halls in order to promote simplicity and austerity. FED will be enhanced on sugary and aerated drinks and it will also be increased on cement from Rs 1.5 to Rs 2 per kg. Rs 40 billion increase in budget of Benazir Income Support Programme.

Increase in FED on cigarettes, GST to not be imposed on essential goods wheat, rice, milk, pulses, vegetables, fruits, fish, eggs, meat, it said. Before mini-budget approval, Dar on floor of National Assembly said government appreciated recommendations by lawmakers for bill and thanked house for participating in debate regarding bill. He said government considered recommendations shared by parliamentarians.

He added government introduced mini-budget following IMF conditions. We also dont like imposing taxes. We tried keeping minimum rate of additional taxes.

Published in The Daily National Courier, February, 21 2023

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