ISLAMABAD, Pakistan: The Minister for Finance and Revenue Senator Ishaq Dar on Wednesday introduced “The Finance (Supplementary) Bill 2023″ in the National Assembly, proposing additional taxes and duties of Rs 170 billion to meet the understanding reached with the International Monetary Fund (IMF) for the Extended Fund Facility.
Sharing main points of the Finance (Supplementary) Bill 2023 in the House, the finance minister said that an effort has been made not to impose additional taxes on daily-used items.
SENATOR MUHAMMAD ISHAQ DAR, Minister for Finance and Revenue,
introduced [The Finance
(Supplementary) Bill, 2023] in the House.
— National Assembly of 🇵🇰 (@NAofPakistan) February 15, 2023
The finance minister said that it is suggested to increase General Sales Tax (GST) from 17 percent to 18 percent.
It has been decided to enhance the GST on luxury items from 17 percent to 25 percent, he added.
For the air travel, the minister said that those travelling through First and Business Class will have to pay the Federal Excise Duty (FED) of 20 percent of the airfare or Rs 50,000 or whichever is higher.
Ishaq Dar said that 10 percent withholding adjustable advance tax will be levied on the bills of wedding halls in order to promote simplicity and austerity.
The finance minister further said that the FED is being enhanced on cigarettes and sugary drinks while it is proposed to increase the Federal Excise Duty on cement from Rs 1.5 to Rs 2 per kilograms.
The minister said that the government has decided to enhance the monthly cash assistance for Benazir Income Support Programme (BISP) beneficiaries and for this purpose, the BISP budget is being enhanced from Rs 360 billion to Rs 400 billion.
Senator Ishaq Dar pointed out that the State Bank of Pakistan (SBP) has issued a priority list for the import of food items, pharmaceuticals and raw material for the export industry.