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.


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