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.
- 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.