ISLAMABAD: Minister of State for Revenue Hammad Azhar announced that the budget recommends a federal excise duty of Rs5,200 on every 10,000 cigarettes be imposed.
The minister for revenue says that the budget recommends that cars of upto 1000 CC see a federal excise duty of 2.5 per cent.
It is further recommended that cars which are more than 2000 CC in capacity see a federal excise duty of 7.5pc imposed.
Increase in federal excise duty on cigarattes advised
Duties will be reduced to boost non-traditional exports
To boost non-traditional exports like wooden furniture, duties will be reduced
To save Pakistan’s forests while safeguarding the furniture industry, duty on imported wood will be reduced from 100pc to 3pc
Steel duties will also be reduced to 5pc to help razor exporters
Duties will also be reduced on several domestic goods, printing and solar panels and chemical industry
Hydrocracker plant machinery to also be exempted from duty
Medicinal ingredients will be given a 3pc import duty exemption
Textile machinery and parts will be exempt from duties
Textile machinery and parts will be exempt from duties. Duty will also be lowered on flexible fibers and non-woven materials
Paper scrap and pulp will be exempted from custom duty as paper is an important input in the educational sector
On different types of paper, duty to be reduced from 20pc to 16pc. This will bring down prices of paper and books, and printing presses will get a boost
Sugar tax advised to be increased to 17pc
Sugar prices are likely to go up as it has been recommended that the sales tax, which previously stood at 8.5 per cent, now be increased to 17 per cent. Sugary drinks will also see an increased tax duty of 13.2 pc versus the previous figure of 11.25 pc.
Tax to GDP ratio is 12pc right now — among lowest in world. Will be brought to 20pc
Agenda for tax reform created that will give macroeconomic stability and help future generations
This agenda is part of the government’s medium term policy framework
The government has been foregoing Rs972.4bn in tax breaks to different sectors
Likewise, the present customs duty regime is losing the country Rs20bn in annual revenue
Govt giving final shape to a corrective customs tariff that will be implemented phase wise