IMF condition: Cabinet approves 25pc sales tax on luxury items

Aug 08, 2023

Business

IMF condition: Cabinet approves 25pc sales tax on luxury items

The Federal Board of Revenue is expected to collect Rs15 billion in four months

ISLAMABAD (Web Desk) - The Shehbaz-led cabinet has approved imposition of 25 per cent sales tax on luxury items, fulfilling another condition set by the International Monetary Fund (IMF).

The summary approval was taken from the circulation for the notification of 25 pc ST from the federal cabinet. Now the Federal Board of Revenue (FBR) will issue a notification and the new rate will be applicable from March 1.

The premier tax collection agency is expected to collect Rs15 billion in four months.

The new ratio of ST will be applicable on imported and locally manufactured 1400cc vehicles, electronic items, and make-up products, pet food, shoes, imported ladies' purses, shampoo, soap, lotion, headphones, iPod, speakers, doors and windows, luxury utensils, bath fittings, tiles, sanitary ware, chandeliers and fancy lights.