PM Shehbaz-led govt mulls increasing sales tax on cosmetic products

The federal government is all set to present the fiscal year budget 2024-25 with an estimated total volume of approximately Rs18,000 billion tomorrow (June 12) in the National Assembly.

Prime Minister Shehbaz Sharif-led government is expected to raise general sales tax by 1 percent from 18 percent to 19 percent.

The items that are expected to see hikes include sugar, ghee, tea leaves, cosmetic products, imported water and juices, auto completely built units (CBU), sanitary and bathroom wares, carpets, chandeliers and lighting devices or equipment, chocolates, cigarettes, confectionary items, cornflakes, cosmetics, shaving items, tissue papers, crockery, decoration/ornamental devices, doors and window frames, fish, footwear, fruits and dry fruits, furniture, homes appliances (CBU), ice cream, jams, jellies and preserved fruits, luxury leather jackets and apparels, mattress, and sleeping bags, mobile phone (CBU), musical instruments, pasta, arms and ammunition, shampoos, sunglasses, tomato ketchup and sauces, traveling bags, and suitcases.

The federal cabinet, chaired by Prime Minister Shahbaz Sharif, is currently reviewing various aspects of the budget.

The meeting will approve the decisions taken by the Economic Coordination Committee (ECC) and will finalise the federal budget.

The Federal Board of Revenue (FBR) has also proposed to increase the tax on imported mobile phones in the federal budget for the next financial year.

Pakistan Telecommunication Authority (PTA) cess and Federal Excise Duty are likely to be increased on the imported cell phones.