ISLAMABAD: Pakistan’s government has announced a series of tax changes aimed at boosting government revenue and combating illegal activities.
Presenting the budget before the National Assembly, Finance Minister Mohmmad Aurangzeb said that the government will scrap exemptions and concessional rates on various goods, from basic necessities to luxury items and will impose standard sales tax rates on various goods.
Luxury Vehicles:
Luxury vehicles, particularly those valued at $50,000 or more, will no longer enjoy import tax exemptions and will face higher taxes and duties. Import duties on glass products will be eliminated, while those on steel and paper products will be increased.
Taxes on Cigarettes
The government is also cracking down on counterfeit cigarettes, with stringent penalties for shops selling them and a hefty tax of Rs 44,000 per kilogram on materials used in cigarette filters, a common component in smuggled cigarettes.
Federal Excise Duty on Construction Sector
In the construction sector, the Federal Excise Duty (FED) on cement has been raised from Rs 2 per kilogram to Rs 3 per kilogram, and a new 5% FED will be imposed on new plots and residential and commercial properties.
GST on Textile and Leather Industries
Retailers in the textile and leather industries will experience changes, with the GST on branded clothes and shoes raised to 18%. These measures are part of a broader strategy to improve tax collection and promote fair market practices.
