By increasing the General Sales Tax (GST) by 1%, from 17% to 18%, and the Federal Excise Duty (FED) on cigarettes by 150%, the government began complying with another condition imposed by the International Monetary Fund (IMF) for the resurrection of the failed $6.5 billion program on February 15th, 2023. This increase is intended to raise Rs115 billion out of the budgeted Rs170 billion in taxes.
The lower class of the economy does not, however, pay any additional or new taxes on the goods they purchase on a regular basis.
The federal cabinet received a draught bill from the administration, according to news reports, and the document will now be submitted to parliament for approval. The federal cabinet, the finance minister remarked
Although with this consideration the matter is being tried to be unbolted by emphasizing the federal cabinet power to increase the GST rate, and the FBR also having the right to independently hike the FED rate on cigarettes, according to the finance minister.
Reported by
Anonymous
