From Today, New Taxes will be Imposed Under a Mini-budget Of Rs 170 Billion Tax

ISLAMABAD: The federal government has started imposing new taxes. Upon agreement with International Monetary Fund (IMF), the government has started imposing taxes under a mini-budget of Rs 170 billion. 

A senior FBR officer said that not only the notification has been issued but instructions have also been issued that the new tax rate should be implemented from today (Wednesday).

Recently, the FBR has increased the GST rate from 17 to 18 percent, also the federal excise duty rate on cigarettes has to shoot up to 150 percent.

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To Increase the rate of federal excise duty, SRO No. 178(I) 2023 issued that the federal excise duty on tier one cigarettes has been increased from Rs. 6,500 to Rs. 16,500 per 1,000 cigarettes. While the federal excise duty on cigarettes included in tier two has been increased from 2,500 rupees to 5,500 rupees per 1,000 cigarettes.

Similarly, the general sales tax rate has been increased from 17% to 18%. Detailed instructions have been issued that after 12 pm on Tuesday, an 18% rate of GST should be imposed. 

The FBR has increased the GST rate on all imported luxury goods and the government has already approved 25 percent GST on hundreds of luxury goods.

Sources say that the government’s preparations to raise the duty rate on luxury items to 25 percent have been completed, and there is a possibility of revenue of 60 to 70 billion rupees by taxing luxury items in the mini-budget.