PESHAWAR: Adviser to Prime Minister on Finance Shaukat Tarin said that the government will announce reduction in petrol products prices after the reduction in oil rates in the international market.
The minister said in an interview with Urdu News that the government is bringing in a mini-budget next week under an agreement with the IMF [International Monitory Fund], but this will not lead to inflation as the tax exemption on consumer goods will be maintained.
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The finance minister informed that along with the bill for mini-budget, a bill on the state bank of Pakistan’s Sovereignty will also be tabled in the parliament, next week.
Last week, media reported that customs duty on imported luxury items will be increased, imported make-up items, imported clothes, shoes and perfumes will become more expensive after the passage of mini budget.
The reports said that sales tax on locally manufactured goods will also be increased from 12% to 17%. The federal government has proposed a six-month ban on imports of luxury vehicles and a 17% increase in taxes on cosmetics and other luxury items. An amendment bill is being considered to end the tax exemption of Rs350 billion on the demand of IMF. The source said that the draft tax amendment bill is likely to be ratified by the Law Ministry, soon.
The reports also said that the federal government is planning tax exemption of Rs27 billion on mobile phones but proposed to increase the tax rate on expensive smartphones, including iPhones. Apart from this, increase in tax on packaged food items, including imported butter and cheese is also under consideration. After the mini budget, the price of frozen meat and branded desi ghee would increase by up to Rs200 per kg. Raw materials for home appliances, LED bulbs and various plants will also see price-hike.
However, the finance adviser said in the interview that he did not want to comment on tax hike until the bill is placed in the parliament for approval.