'Mini-Budget

The current government has introduced a "mini-budget" aimed at raising Rs170 billion in revenue, in compliance with the demands of the International Monetary Fund (IMF) to increase taxes on the population already burdened by inflation.

To collect taxes worth Rs115 billion, the Federal Board of Revenue (FBR) has issued an SRO that will raise the standard general sales tax (GST) from 17% to 18%. The Finance (Supplementary) Bill 2023 will be used to generate the remaining Rs55 billion through other measures.

The top tax collection authority stated in its notification that the 18% GST would be applied to consumer packaged goods, which include a wide range of items used in daily life.

After an increase in the GST, the items will get expensive and these are following:

  • Edible oil
  • Biscuits
  • Jam
  • Jelly
  • Noodles
  • Children's toys
  • Chocolates
  • Coffee
  • Make-up
  • Shampoos
  • Creams
  • Lotion
  • Soap
  • Toothpaste
  • Hair colour
  • Hair remover cream
  • Hair gel
  • Shaving foam
  • Shaving gel
  • Shaving cream
  • Shaving blades
  • Computers
  • Laptops
  • Electronic gadgets
  • Smartphones
  • iPods
  • TVs
  • LEDs
  • LCDs
  • Juicers
  • Blenders
  • Other electronic machinery
  • Car shampoos
  • Car polishes
  • Perfumes
  • Branded perfumes
In addition to the previously mentioned measures, the government plans to raise the GST on luxury items from 17% to 25%. Furthermore, the Federal Excise Duty (FED) on business and first-class air tickets will be increased to Rs20,000 or 50% of the ticket price, whichever is higher.
Marriage halls will also be subjected to a 10% withholding adjustable advance income tax, while the FED on soft drinks, sugary drinks, and cement will be increased.