ISLAMABAD: The federal government presented Thursday to Parliament the additional finance bill for the withdrawal of exemptions from the general sales tax (GST) and the imposition of a 17% tax on nearly 150 items.
According to the details of the bill, a 17% GST will be imposed on 140 essential consumer and industrial goods.
Here is a list of items that will experience a rise in prices following the approval of the amending finance bill – described by the opposition as a “mini-budget”.
- Imposition of an advance tax on fictions and television series produced abroad as well as on advertisements featuring actors from other countries (PKR 3 min per episode on plays and PKR 5 min per second on actors);
- A 17% GST will be imposed on items sold in bakeries, restaurants and confectionery, food served in in-flight kitchens, sausages and locally produced poultry meat products, crude vegetable oil, over-the-counter grains and red peppers.
- The import tax rate for oilseeds will be reduced from 5% to 17%.
- The GST on silver and gold will drop from 1% to 17%.
- Goods received as a gift from a government or foreign organization will be taxed at 17%.
- Items sold in bags will be subject to a 17% GST compared to 8% previously.
- Seeds, plants, tools and chemicals used in agriculture will also be subject to the 17% GST.
- 10% sales tax to be imposed on imported vegetables.
- 10% tax to be collected on flour mills.
- 5% tax on fitness centers, laundries, beauty salons, travel agencies, industrial machine workshops and automotive workshops located in ICT.
- A 5% tax will be levied on imported laptops, personal computers and notebooks.
- It is proposed that cottonseed be taxed at 17% GST.
Telecommunications and Information Technology
- The finance bill proposes an increase in the income tax on cellular services (mobile phone calls) from 10% to 15%.
- Proposes a 5% increase in the withholding tax (WHT) on telecom services.
Auto parts assemblers and manufacturers
- The sales tax on batteries will be reduced from 12% to 17%.
- The GST will be increased on locally manufactured cars above 850cc from 12.5% ​​to 17%.
- Services provided by car / car dealers in ICT will be taxed at 5%.
- The 17% GST will be imposed on hybrid electric vehicles over 1,800 cc.
Pharmaceutical
- Imposition of 17% GST at the import stage on drug raw materials.
Food and dairy products
- A 17% GST will be imposed on processed milk and dairy products sold in branded packaging as well as on items sold in restaurants and confectionery.
- A 17% GST will be imposed on imported animals and livestock.
- A sales tax of 17% will be levied on poultry machinery.
- A 17% GST will be imposed on imported infant formula, which is not currently subject to any GST.