The government has decided to impose sales tax on hundreds of items sold in retail packaging.
The items include milk, baby formula milk and other milk-based products. An 18% GST will also be collected on ghee, cooking oil, sweetmeat (mithai), pasta, sauces, jams and fruit juices.
Agricultural medicines and disinfectants sold in retail packaging have also been brought under the sales tax regime.
The budget documents show that tax has been imposed on plastic household items, kitchenware and storage items. Bags, suitcases, handbags and other travel goods will also become more expensive.
All types of shoes have been brought under the scope of sales tax, while bathroom fittings, sanitary ware and washroom accessories have also been taxed.
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Sales tax will also be collected on crockery and other household items.
Federal budget size fixed at Rs18.77tr
According to the budget document, the size of the federal budget for the upcoming fiscal year has been set at Rs18,771 billion. The Federal Board of Revenue’s annual tax target has been fixed at Rs15,264 billion.
Gross revenue has been estimated at Rs20,600 billion, while non-tax revenue is projected at Rs5,336 billion.
The budget document shows that Rs8,848 billion will be transferred to the provinces in the next fiscal year. After provincial transfers, the federal government’s net revenue is estimated at Rs11,751 billion.
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The government plans to borrow Rs2,034 billion from internal sources and Rs813 billion from external sources. It will also obtain Rs4,012 billion through T-bills, Pakistan Investment Bonds and Sukuk.
In addition, Rs161 billion is expected to be generated through the privatization of government institutions during the next fiscal year.
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