Pakistan's Parliament approved the Finance Bill 2024-25 to boost tax revenues amid economic challenges but faced criticism for its tax policies.
After Finance Bill approval, the amended Finance Bill, prices for several essential items like meat, mobile phones, packaged milk, and medicines are expected to rise significantly.
The bill, with massive taxes, will impact daily living expenses for citizens across various sectors.
Reports shared online suggest that prices for chicken, beef, and goat meat are set to increase, along with higher costs anticipated for mobile phones. Over-the-counter medications for common ailments such as colds and flu will also become more expensive.
The amended bill imposes a 10pc sales tax on animal feed, poultry feed, livestock feed, and products made from sunflower and canola seeds. Imported mobile phones valued under $500, as well as locally manufactured ones, will face an 18pc sales tax.
Those earning over Rs10 million annually will face a 10% surcharge on their 35% income tax, effectively raising the salaried tax rate to 39%, while non-salaried individuals could face up to 50% in taxes.
Additionally, while the government reduced the petroleum levy from Rs80 to Rs70 per liter, it remains higher than the current Rs60 per liter rate. A 5% federal excise duty on engine oil has also been introduced, affecting commodity prices directly.