KARACHI – As the South Asian nation battles to obtain crucial finance from the International Monetary Fund, the federal government has decided to increase the cess on vehicles, mobile phones, cosmetics, and a number of luxury commodities from 18% to 25%. (IMF).
According to information obtained, the Sharif-led administration has submitted a summary to increase the revised general sales tax (GST) on a number of luxuries in order to raise an additional Rs11 billion.
According to a summary that has been circulated to the cabinet, the action is reportedly another attempt to restart IMF money that has halted.
The executive summary suggested raising taxes on items like jewelry, automobiles with engines 1400 cc and up, 44 trucks, bathroom accessories, carpets, chocolates, cigarettes, bakery items, cosmetics, crockery, decoration pieces, doors and window frames, fish, footwear, fruits and dry fruits, furniture, home appliances, leather jackets, and mattresses, as well as items like frozen or canned goods.
With the prices of several commodities rising, the extra tax measures are predicted to accelerate the pace of monthly consumer price inflation, which has recently risen to a level not seen in over 50 years.
According to recent developments, the price of edible oil, sugar, and vegetables caused the weekly inflation to soar to 41% on an annual basis. Cigarettes went up 165.86 percent, gas prices 108.38 percent, diesel 93.82 percent, petrol 77.89 percent, and chicken meat 64.70 percent.