Govt ends exemptions, proposes 18% sales tax

Govt ends exemptions, proposes 18% sales tax

Govt ends exemptions, proposes 18% sales tax
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ISLAMABAD: The federal government has proposed eliminating sales tax exemptions and concessions on various items, including mobile phones, copper, coal, paper, and plastic scrap. In his budget speech to the National Assembly, Finance Minister Muhammad Aurangzeb proposed a standard sales tax rate of 18 percent on these items.

The government also suggested increasing import duties on luxury cars valued over $50,000 and on steel and paper products. The proposed 18 percent sales tax would apply to mobile phones, copper, coal, paper, and plastic scrap.

Muhammad Aurangzeb presented Pakistan’s budget for the fiscal year 2024-25, with a total allocation of Rs18 trillion.

The finance minister announced a 101 percent increase in the development budget, with 81 percent allocated for ongoing projects and 19 percent for new initiatives. He also unveiled development projects in Azad Kashmir and merged districts, emphasizing that completing ongoing projects would be the government’s top priority. “The government will focus on export, equity, empowerment, environment, and energy under the 5-E framework,” he added.

Specific allocations include Rs5 billion for the Quaid-e-Azam Health Tower in Islamabad, Rs7 billion for development projects in the poorest districts, Rs6 billion for the Karakoram Highway project, Rs4 billion for the digitalization of the national economy, Rs2 billion for establishing a Danish school in Islamabad, and Rs5 billion for establishing seven Danish schools in Azad Kashmir and Gilgit-Baltistan.

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