WEB DESK: In the upcoming budget, new taxes are proposed to generate an additional revenue of Rs. 2 trillion.
Furthermore, a 5% sales tax on petroleum products is likely to be imposed in the initial phase. Through this tax it is expected to generate approximately Rs. 600 billion in revenue.
Moreover, the Finance Bill for the next fiscal year proposes ending all sales tax exemptions, sources say. Ending sales tax exemptions is expected to bring in an additional Rs. 550 billion in revenue, sources say.
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However, to meet the additional tax target, the sales tax rate will likely be increased by another 1%. Increasing the sales tax rate is expected to generate approximately Rs. 100 billion in additional revenue, sources say.
The sales tax rate will rise from 18% to 19%, sources say. In addition, there is a proposal under consideration to increase import duties for commercial importers by 1%, according to FBR sources. Increasing the duty rates for commercial importers is estimated to generate Rs. 50 billion, sources say.
