ISLAMABAD – The National Assembly on Monday passed the “Finance(Supplementary) Bill, 2023,” proposing imposition of additional taxes andduties of Rs170 billion to meet the preconditions placed by theInternational Monetary Fund (IMF) to revive the loan programme.
According to the bill, General Sales Tax (GST) will be increased from 17percent to 18%. It has also been decided to enhance the GST on luxury itemsfrom 17 percent to 25 percent. The bill has proposed imposition of a fixedamount of Federal Excise Duty ranging from Rs25,000 to Rs75,000 ofdifferent tiers on airfare for first, business and club classes should beimposed.
Besides, ten percent withholding adjustable advance tax will be levied onthe bills of wedding halls in order to promote simplicity and austerity,state broadcaster reported.
The FED will be enhanced on sugary and aerated drinks, while it will beincreased on cement from Rs1.5 to Rs2 per kilogrammes.
Winding up discussion on the Finance (Supplementary) Bill, Finance MinisterIshaq Dar said the government fully realises the problems beings faces bythe masses due to rising inflation, but it was compelled to take toughmeasures to strengthen the economy.
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He said the government has allocated an additional amount of Rs40 billionfor Benazir Income Support Programme, approving 25% rise in stipend of BISPbeneficiaries.
Regarding austerity measures, Ishaq Dar said the premier will soon announcea comprehensive policy to reduce government expenditure.
