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Govt approves 25% GST on luxury items

ISLAMABAD: Governm+ent approved to impose 25% GST on more than hundreds luxury items on Wednesday.

Taxes on luxury items may increase 60 to 70 billion income to national revenue.

Increase in sales tax from 17 to 18% has also been decided. One percent increase in sales tax will burden people more than 50 billions.

Federal Board of Revenue (FBR) has increased GST on all imported luxury items which was banned by Trade minister few month earlier.

Suggestion also made to increase GST on some indigenously produced luxury items.

Due to International Monitory Fund (IMF) obstacles government postponed flood levy imposition.

Due to high taxes on cigarettes illegal trade is continues. It adds 100 billion lose to national exchequer.

FBR immediately imposed excise duty on cigarettes. Notification has been made public. 16500 PKR will be added to the cigarettes of Rs-9000. One thousand less price cigarettes will have to pay 5500 Pkr as excise duty.

Government wants to make agreement with IMF until tomorrow evening.

Sales tax will also increase on air tickets.

According to notification, sales tax increased 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 also increased to 18% on shampoo, cream, lotion, soaps, toothpaste, hair colors, hair remover cream, Gel, hair siram along with shaving cream, shaving foam, shaving gel, and shaving bladders.

Electronics including TV, LED, LCD, mobile phones, Jiucers blanders, shakers and other machinery also went high price due to sales tax increase to 18%.

Vehcils’ shampoo, creams and other items taxes including perfumes prices also added 18% sales tax.