Minister for Finance Shaukat Tarin presented the supplementary finance bill, termed as a mini budget, amid opposition protest in the National Assembly and imposed 17 percent general sales tax (GST) on 140 essential consumable and industrial goods.

Let’s take a look at the list of items that will become expensive after imposition of GST.

  • Imposition of advance tax on foreign-produced TV dramas and serials as well as advertisements starring actors from other countries (PKR 3 million per episode on plays and PKR 5 million per second on actors);
  • 17 percent GST will be imposed on items sold in bakeries, restaurants, and sweet shops, foodstuff served in-flight kitchens, sausages, and products of poultry meat, locally produced crude vegetable oil, cereals, and openly sold red chillies.
  • Tax rate on import of oil seeds will go up from 5 percent to 17 percent.
  • The GST on silver and gold will increase from 1 percent to 17 percent.
  • Goods received as gifts from a foreign government or organisation will be taxed at 17 percent.
  • Items sold in sachets to be subjected to a GST of 17 percent against 8 percent previously.
  • Seeds, plants, tools and chemicals of the agriculture sector will also be subjected to 17 percent GST.
  • A 10 percent sales tax is imposed on imported vegetables.
  • A 10 percent tax to be levied on flour mills.
  • A 5 percent tax on fitness centres, laundries, beauty salons, travel agencies, industrial machinery workshops and automobile workshops located in ICT.
  • A 5 percent tax will be levied on imported laptops, personal computers and notebooks.
  • Cottonseed is proposed to be taxed at 17 percent. 

Telecom, Information technology

  • Finance bill proposes an increase in income tax on cellular services (mobile phone calls) from 10 percent to 15 percent.
  • Proposes an increase of 5 percent withholding tax (WHT) on telecom services.

Automobile, parts manufacturers

  • Sales tax on batteries will be increased from 12 percent to 17 percent.
  • GST to be increased on locally manufactured cars above 850cc from 12.5 percent to 17 percent.
  • Services provided by car/automobile dealers in ICT will be taxed at 5 percent.
  • A 17 percent GST will be imposed on hybrid electric vehicles over 1,800cc.

Pharmaceutical

  • Imposition of 17 percent GST at the import stage on raw materials of medicines.

Food and dairy

  • A 17 percent GST will be imposed on processed milk and dairy items sold in branded packaging as well as items sold in restaurants and sweet shops.
  • A 17 percent GST will be imposed on imported animals and livestock.
  • A 17 percent sales tax will be levied on poultry machinery.
  • A 17 percent GST will be imposed on imported infant formula milk, which is currently being subjected to no GST.

The story was filed by the News Desk.
The Desk can be reached at info@thecorrespondent.com.pk.

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