The federal government has announced a comprehensive overhaul of the existing tax structure, introducing significant changes across various sectors.
Central to this overhaul is the decision to levy an 18% sales tax on various categories of mobile phones, a measure expected to have widespread implications for consumers and the telecommunications industry.
The Finance Ministry, in its latest budget proposal, outlined several key decisions, including the elimination of numerous sales tax exemptions and the introduction of standardized tax rates on a wide range of goods.
Among the notable changes is the imposition of withholding tax on commodities such as copper, coal, paper, and plastic scrap. Additionally, the government has decided to end tax exemptions on the import of luxury vehicles, along with increasing taxes and duties on imported vehicles valued at fifty thousand dollars or more.
Furthermore, the new policy eliminates the import duty on glass products, a move likely aimed at supporting the local construction industry. Conversely, duties on the import of steel and paper products will see an increase, reflecting the government's intent to protect domestic manufacturers from international competition.
In a statement, Finance Minister Muhammad Ishaq Dar emphasized that these measures are part of a broader strategy to stabilize the economy and ensure a more equitable tax system. "Our goal is to create a fair tax environment where every sector contributes its due share to the national exchequer. These changes are essential for our fiscal health and long-term economic stability," he said.
