FBR Proposes 1% GST Increase and 6% Sales Tax Hike on Petroleum Products for 2024-25 Budget

• FBR proposed to increase GST by 1%, sales tax on petroleum products by 6%
• Proposed tax target of Rs12,900 billion for fiscal year 2024-25
• New taxes being considered to generate additional Rs2,000 billion in revenue
• Proposal to impose 6% sales tax on petroleum products to generate Rs. 600 billion
• Consideration to remove all sales tax exemptions in finance bill for fiscal year 2024-25
• Proposal to impose sales tax on packaged milk
• Ending sales tax exemptions expected to yield additional income of around Rs550 billion
• Possibility of increasing sales tax rate by 1% to meet additional tax target
• Proposal to increase import duties for commercial importers by 1% to generate Rs50 billion
• Increase in sales tax rate likely to raise inflation in next fiscal year
• All tax proposals for upcoming budget shared with IMF

Source: 24newshd.tv

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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