The National Assembly of Pakistan has approved the federal budget for the upcoming fiscal year, starting July 1st, 2024. This new budget implements several tax changes that will affect the prices of various goods and services. Here’s a breakdown of some key items that will become more expensive:
- Animal Feed & Food Items: A 10% sales tax will be applied to animal feed, including poultry feed, cattle feed, and sunflower seed feed. Additionally, certain food items like buns and juice will also face a 10% sales tax.
- Mobile Phones:
- Imported mobile phones below $500 will have an 18% sales tax.
- Imported mobile phones above $500 will have a 25% sales tax.
- An 18% sales tax will be imposed on both imported mobile phone parts and domestically manufactured mobile phones.
- Travel: Expect an increase in excise duty on airline tickets for business and club class travel, depending on the destination:
- USA & Canada: Increase from Rs. 2.5 lakh to Rs. 3.5 lakh.
- Europe: Increase from Rs. 1.5 lakh to Rs. 2.1 lakh.
- New Zealand & Australia: Increase by Rs. 60,000.
- China, Malaysia, Indonesia, etc.: Increase to Rs. 2.1 lakh.
- Dubai, Saudi Arabia, Middle East & Africa: Increase by Rs. 30,000.
The National Assembly of Pakistan has passed additional measures as part of the recently approved federal budget for the 2024-25 fiscal year. Here’s a summary of these key updates:
Tax on Homeopathic Medicines: The previous exemption for sales tax on homeopathic medicines has been abolished. This means consumers can expect price increases on various homeopathic products, including syrups, creams, cough syrups, herbal concoctions, jams, suppositories, tablets, and hundreds of other commonly used remedies.
Increased Penalties for Tax Evasion: The government is cracking down on tax fraud and evasion with stricter penalties. The new law imposes:
- Fines of Rs. 25,000 or an equivalent amount to the evaded tax.
- Imprisonment of up to 5 years for tax evasion or fraud amounting to Rs. 50 crore (5 billion rupees).
- Imprisonment of up to 10 years for tax evasion or fraud exceeding Rs. 1 billion (10 billion rupees).
Impact on Consumers:
The tax on homeopathic medicines might make these previously affordable healthcare options less accessible for some Pakistanis.
Impact on Tax Compliance:
The increased penalties aim to deter tax evasion and encourage individuals and businesses to comply with tax regulations.
Following Developments:
For further details on the specific tax implications for homeopathic medicines and the complete list of tax changes in the budget, it’s recommended to follow our WhatsApp channel and newsletter.
