ISLAMABAD: On Thursday, the Financial Supplementary Bill (mini-budget) was approved by the National Assembly. The session also passed the State Bank of Pakistan Autonomy Bill. Both bills were passed in order to meet the requirements of International Monetary Funds (IMF) for the disbursement of the loan’s tranche.
During the session, the opposition challenged the voting twice on Financial Supplementary Bill. However, the mini-budget was passed with a majority of 168 against 150. According to the new budget, the income tax rate on telephone calls will rise by 50 per cent. A 100pc increase will be seen in the advance income tax on cars’ registration. Foreign produced dramas will also be subjected to new taxes. Sales tax on foreign electric vehicles is also raised by 12.5pc.
A 17pc general sales tax (GST) has been raised on infant milk, however it will be applicable on products priced over Rs500, along with rusk, bun, sheermal, chapatti, naan, vermicelli, and bread that are sold by entities related to the Federal Board of Revenue’s point of sales system.
Other items that will bear the 17pc GST include raw pharmaceutical products, sweetmeats, prepared food, cereals, imported vegetables, matchboxes, branded poultry products, flavoured milk, branded dairy and oil products, machinery used in dairy products manufacturing, mobile phones, and frozen sausages.
The 17pc GST is also applied on importing books, periodicals, journals, newspapers, and newsprint. Items that are manufactured under FBR integrated retail outlets will now bear a 12pc tax.
