The Finance Division dismissed released a statement on Friday that the government planned to levy taxes of Rs80b through a mini-budget.
It was also pointed out in a statement that Finance Minister Miftah Ismail did not disclose that taxes totalling Rs80b will be declared through an ordinance during his news conference on August 18.
“Refer to news released… that the government intends to propose a mini-budget for tax collection of Rs80b by ordinance.” “The news is deceptive and inaccurate,” it said.
The government’s three-month-old import restriction on luxury and non-essential goods would be lifted, according to the finance minister, who also announced new tax measures totalling more than Rs50b.
In a statement released yesterday, the Finance Division stated that the government would issue an ordinance in “a few days” that would introduce variable taxes on traders, beginning with a 5pc sales tax and a 7pc income tax on all merchants for a period of three months.
Beginning on October 1, these fees would be imposed on businesses that used 50 units or more of power, with the rates escalating progressively as more units were consumed.
“Instead of imposing a set tax on merchants, which will lower income by Rs42b, we will return to the previous system of ad valorem taxation.” This will result in a Rs15b decrease in FBR income. We will compensate by levying Rs36b in tobacco and cigarette levies.”
On Thursday, Finance Minister Ismail said that the import restriction on all products will be lifted in accordance with the government’s agreement with the International Monetary Fund (IMF).
However, the government would impose substantial regulatory taxes (RDs) on these things at the same time, he added, adding that as a result, these items would not be imported as “finished goods.”
Ismail declared, “We will attempt to impose three times the current RDs, the highest number of RDs allowed.” He claimed that because the nation lacked foreign cash to buy things like Mercedes vehicles, the government’s RDs in some areas would range from 400 to 600pc.
“With my limited resources, I will give edible oil, flour, and wheat priority over iPhones and cars. To prevent their import from increasing, we shall lift the bans but levy exorbitant duties in the form of RDs, customs duties, and sales tax.
