ISLAMABAD: A 17 per cent general sales tax (GST) is set to be applied in the mini-budget along with a 50 per cent increase on phone calls’ income tax.
The new GST would affect consumable goods, industrial items, mining and extraction machinery, cars and import items. Cars that are manufactured locally, above 850cc, and CKD kits will fall under the new tax rate along with hybrid vehicles, greater than 1800cc.
The tax will also be charged on cellular phones with a price range of Rs1,740-Rs,9270. Excluding luxury items, around 80 import goods would be subjected to the new GST, hoping to generate revenue in excess of Rs300 billion.
After consistent pressure from the local industry, television dramas and advertisements produced comprising foreign cast members would also be subject to the proposed GST.
Finance Adviser to the PM Shaukat Tarin has received the plan, and the same will be presented in the parliament after his approval.