ISLAMABAD – The National Assembly on Monday passed the “Finance (Supplementary) Bill, 2023,” proposing imposition of additional taxes and duties of Rs170 billion to meet the preconditions placed by the International Monetary Fund (IMF) to revive the loan programme.
According to the bill, General Sales Tax (GST) will be increased from 17 percent to 18%. It has also been decided to enhance the GST on luxury items from 17 percent to 25 percent. The bill has proposed imposition of a fixed amount of Federal Excise Duty ranging from Rs25,000 to Rs75,000 of different tiers on airfare for first, business and club classes should be imposed.
Besides, ten percent withholding adjustable advance tax will be levied on the bills of wedding halls in order to promote simplicity and austerity, state broadcaster reported.
The FED will be enhanced on sugary and aerated drinks, while it will be increased on cement from Rs1.5 to Rs2 per kilogrammes.
Winding up discussion on the Finance (Supplementary) Bill, Finance Minister Ishaq Dar said the government fully realises the problems beings faces by the masses due to rising inflation, but it was compelled to take tough measures to strengthen the economy.
He said the government has allocated an additional amount of Rs40 billion for Benazir Income Support Programme, approving 25% rise in stipend of BISP beneficiaries.
Regarding austerity measures, Ishaq Dar said the premier will soon announce a comprehensive policy to reduce government expenditure.
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