25% Sales Tax Charged on Locally Manufactured Vehicles. Pakistan Raises Sales Tax on Vehicles, Gas Prices Soar Amidst Inflation Concerns
Key Points:
- 25% sales tax imposed on locally manufactured vehicles: This targets vehicles priced at Rs 4 million or more or those with 1400cc+ engines.
- Gas prices to increase by 65% or more: This move aims to fulfill an IMF demand but will impact both protected and non-protected consumers.
- CNG sector faces additional burden with a Rs 170 per mmbtu increase.
- Urea fertilizer companies to face a uniform gas tariff.
Concerns:
- These measures, while aiming to boost government revenue, add to the burden on consumers already struggling with inflation.
- The potential impact on various sectors and income groups requires further analysis.
Various measures approved by the Economic Coordination Committee (ECC) of Pakistan:
Boosting Exports:
- Jewelry Policy Reform: The committee agreed to amend import and export regulations for precious metal jewelry and gemstones, aiming to promote this export-oriented sector.
- Service Sector Opening: A committee was formed to explore policy changes for opening up the service sector, potentially benefiting exports.
Other Measures:
- Government Guarantee for Karandaaz: ECC approved a Share Subscription Agreement between National Credit Guarantee Company Limited (NCGCL) and Karandaaz to support small businesses.
- Intelligence Funds Increase: The Bureau received additional funds to address terrorism and anti-state activities.
- World Bank Loan Approval: Technical supplementary grant was approved to cover the remaining funds from a World Bank loan.
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