Govt imposes additional taxes of Rs170b on cash-starved nation

The coalition government on Wednesday dropped a bombshell on the people already struggling to cope with record inflation by levying additional taxes of Rs170 billion on them, reported 24NewsHD TV channel. 

The taxes were listed in the Finance (Supplementary) Bill 2023 which Finance Minister Ishaq Dar tabled in the National Assembly in order to meet the demand of the International Monetary Fund (IMF).

If passed, the bill will result in astounding increase in the prices of hundreds of items of daily use, including sugar, cement, mobile phones, cigarettes, drinks, air tickets.

Moreover, advance tax will be levied on marriage halls, hotels, commercial lawns and clubs.  

Similarly, taxes will increase on the expensive, imported cellphones. 

Sales tax on the cellphones costing $500 will increase from 17 to 18 per cent while the tax in the case of cellphones costing over $500 will increase from 17 per cent to 25 per cent.

Likewise, 10 per cent tax will be levied on the purchase of shares at the Pakistan Stock Exchange (PSX).

Excise duty on carbonated drinks will jump from 13 per cent to 20 per cent, while on syrups the duty will increase to 10 per cent. 

150 per cent hike in excise duty on cigarettes was also notified. This will generate Rs60 billion for the government. 

Speaking in the National Assembly, the finance minister asked masses already coming to grips with record inflation to lead a simple life.

The bill would result in increase in the prices of most items of daily use, including soap, cooking oil, drinks, biscuits, jam, chocolate, toffees, makeup kit, shampoo, cream, lotion, toothpaste, cellphones, computers, laptops, gadgets, electronic appliances, cigarettes, cement and air tickets.

While reading out disturbing features of the bill, Dar still had the cheek to say that soon the country’s economy would progressap

progress at the rate of 4 per cent.  

The finance minister said that the government was cognizant of the rising inflation, and it was its endeavor to burden the masses as little as possible.

He was quick to remind that additional taxes had not been levied in the bill on wheat, rice, milk, pulses, vegetables, eggs, chicken and mutton.  

The minister said that a national commission would be constituted to probe the causes of the economic downfall. 

He said that the growth rate in 2017, when the PML-N was in power, had crossed six per cent mark, and the country had become the 24th largest economy in the world. “But during the PTI government, the country’s economy came down to 47th position,” he claimed. 

He accused former prime minister Imran Khan of causing loss to the economy by leaving the International Monetary Fund (IMF) programme incomplete. 

He also boasted that the income of the common man had increased during the PML-N government.  

Describing the features of the supplementary bill, the finance minister said that the government had decided to increase the sales tax from 17 per cent to 18 per cent. “Similarly, the general sales tax (GST) on luxury items has been increased from 17 per cent to 25 per cent,” Dar disclosed. 

He announced the levy of advance tax on the purchase of air tickets.

Reporter: Waqas Azeem