KARACHI: The federal government is likely to impose new taxes, including the imposition of five percent sales tax on petroleum products, in order to get an additional revenue of 2000 billion rupees in the federal budget of the next fiscal year 2024-25.
In this regard, the Federal Board of Revenue sources says that the proposal to impose five percent sales tax on petroleum products in the initial phase, which is expected to generate a revenue of about 600 billion rupees.
According to sources, the finance bill for the next financial year also proposes to remove all unnecessary sales tax exemptions, and the removal of sales tax exemptions is expected to generate additional revenue of around Rs 550 billion.
Sources say that apart from this, various proposals are being considered to get 700 billion rupees more. According to the sources, to meet the additional tax target, the sales tax rate is likely to increase by one percent, which will generate additional revenue of billions of rupees. It is expected, however, it is also feared to increase inflation due to which it is being opposed by some circles.
FBR sources say that the rate of sales tax will also increase from 18 percent to 19 percent, while a proposal to increase import duties by one percent for commercial importers is also under consideration.
According to the sources, an additional income of 50 billion rupees has been estimated by increasing the rate of commercial importers’ duties.
According to FBR sources, all the tax proposals for the upcoming budget have been shared with the IMF and after consultation with the IMF, they will be presented in the federal cabinet meeting for final approval on inclusion in the budget. There is a possibility of change.
