Potential Sales Tax Increase to 19% in 2024-25 Budget Sparks Inflation Concerns

• Government considering increasing sales tax rate to 19% in 2024-25 budget
• Aim is to generate substantial revenue but concerns raised about inflationary impact
• Analysts believe government seriously considering the increase
• Proposed hike follows previous increase from 17% to 18%
• Concerns raised about passing on cost to consumers and contributing to inflation
• Estimated increase could contribute Rs 180 billion to tax collection
• Government exploring alternative measures like withdrawing sales tax exemptions
• Debate sparked among economists and policymakers about the impact of increased sales tax
• Budget deliberations crucial in determining if increase will proceed
• Stakeholders closely monitoring government’s decision with significant implications for economy.

Source: pkrevenue.com

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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