ISLAMABAD: The government has fulfilled another condition by implementing the IMF conditions in which the cabinet has approved to increase the sales tax on luxury items to 25 percent.
Summary approval was taken from the circulation for the notification of 25 percent sales tax from the federal cabinet, after which the FBR will issue the notification and the new rate will be implemented from March 1.
By increasing the sales tax on luxury items, the FBR will earn Rs 15 billion in 4 months.
According to sources, sales tax on imported and locally manufactured 1400 cc vehicles will also be increased to 25 percent, sales tax on imported electronic items, imported make-up products will be increased to 25 percent.
Apart from this, the sales tax on imported pet food, imported shoes, imported ladies’ purses, shampoo, soap, lotion, imported headphones, iPod, A speakers, doors and windows will also be 25 percent.
According to the summary, the sales tax on imported luxury utensils, bath fittings, imported tiles, sanitary ware, chandeliers and fancy lights will also be 25.