ISLAMABAD: Federal Finance Minister Senator Ishaq Dar presented the Finance Bill 2023 in the National Assembly according to which the sales tax on luxury items has been increased to 25 percent.
Pakistan Finance Supplementary Bill 2023
According to the Finance Supplementary Bill 2023, the rate of sales tax on luxury goods has been increased from 17% to 25%. The bill proposes a federal excise duty rate of 10 percent on the retail price of beverages, while the GST rate on various goods has been increased from 17 to 18 percent.
In the Finance Supplementary Bill, besides the proposal to levy advance tax on wedding halls and hotels, advance tax on commercial lawns, marquees and clubs has also been proposed, while the proposal to increase tax on mobile phones has also been included. Apart from this, it is also proposed to levy 10% tax on retail price of beverages along with advance tax on air tickets.
The Supplementary Finance Bill proposes to increase the tax on cement by 50 paisa per kg. Apart from this, it is proposed to increase the federal excise duty on cement from one and a half rupees to two rupees per kg. The Bill also includes a proposal to levy 10% advance tax under Section 236 of the CB.
