ISLAMABAD: The government will present a mini-budget of Rs 360 billion in the National Assembly today after the approval of a special meeting of the federal cabinet to meet the conditions of MF.
According to the Express Tribune, the Prime Minister has convened a cabinet meeting this afternoon to approve the mini-budget. According to Finance Ministry sources, these 144 items are either completely exempt from GST or are subject to 5% to 12% tax. They will now be charged 17% sales tax.
The imposition of 17% sales tax on these items would raise the tax collection to more than Rs 352 billion as many items would be taxed for the first time and the FBR did not estimate the tax estimates.
Increasing the income tax rate on mobile phone calls from 10% to 15% will result in an additional Rs 7 billion. Zero rating tax will be levied on imported raw materials used for milk production for infants and 17% sales tax will be levied on it. Will increase revenue by Rs. 9 billion. In this regard, the tax revenue is estimated at 15 billion.
Sales tax has also been levied on infants’ goods and it will also generate 6 billion rupees in revenue. Items of duty free shops are also subject to 17% sales tax. Since this is the first time they have been taxed, the tax collected cannot be estimated.
Sales tax on cars larger than 850 cc will be levied at 17%, while tax on CBUs of imported electric vehicles will be increased from 5% to 17%. The tax on business-to-business transactions will also be increased from 16.9% to 17%. 17% GST will also be levied on raw materials for medicines, which will fetch a maximum of Rs 45 billion.
Rs 30 billion will be received at the import stage while Rs 15 billion will be received at the local stage. However, the FBR says that the raw material will remain zero rated and will be refunded. Bakeries, restaurants, food chains and shops producing bread will be taxed at 17%, which will fetch Rs 5 billion.
Hotels, caterers, shops, and restaurants that prepare and serve ready-to-serve meals, prepared meals and delicacies in the mess will be increased from 7.5% to 17%, which will make hotel accommodation more expensive.
Rs 7 billion will be taxed on imported vegetables. Red pepper sold in retail packaging will be taxed. Rs 5 billion will be levied on grains and products for milling industry and local supply of rice, wheat, wheat and flour will be exempted. Matches will also be taxed at 17%.
Dairy products, sausages, poultry and other ski products that are sold in retail packaging under a brand name or trademark will also be taxed at 17%. The tax rate on flavored milk sold in retail packaging under the brand name will be increased from 10% to 17% which will generate revenue of Rs 1 billion. Tax on curd, cheese, butter, ghee, milk and cream will also be increased from 10% to 17%. Dairy related machinery and equipment will now be taxed at 17% instead of 5%.
Mobile phones will be taxed at 17% of the fixed rate. Supplies from retail stores connected to the FBR’s computerized system, which are currently taxed at 10%, will now be taxed at 16%. The tax rate on frozen prepared or preserved sausages will increase from 8% to 17%. Items received as gifts or donations from a foreign government or organization will be taxed at 17%.
Imports of all goods received in the event of a natural disaster will also be taxed. 17% tax will be levied on goods imported by post as immovable gifts.
Rs 200 million will be taxed on imported samples, contraceptives and accessories. Sewing machines will be taxed at 17%. The import of live animals and poultry will be taxed at 17% and will generate revenue of Rs. 700 million but local supply will be exempted.
Taxes on field preparation equipment, seed and planting, irrigation, drainage, and agrochemical preparation, harvesting, threshing equipment and post-harvest handling equipment will increase from 5% to 17%. GST on poultry sector machinery will increase from 7% to 17%, tax on multimedia projects from 10% to 17%, tax on lithium iron batteries from 12% to 17%.
GST on silver and gold will increase from 1% to 17% and on jewelery articles from 17%. Renewable energy sources such as solar and wind, irrigation equipment will also be taxed. The tax rate on import of oilseeds will be increased from 5% to 17%, machinery and equipment of BMR system related to coal mining, gas processing plants and oil and gas field prospecting, plant, machinery, mining equipment. , Coal mining machinery, equipment imported for Thar Coal Field will be subject to 17% GST.
Under an agreement with the government of Pakistan, Rs 14 billion will be levied on machinery and equipment for BMR or power generation expansion projects, while 17% on machinery, equipment and spares for BMR or power generation expansion projects. ST will also be levied which will generate revenue of Rs. 42 billion. That’s it
