What items will get expensive after ‘mini-budget’?

ISLAMABAD: The International Monetary Fund (IMF) wants more taxes to be put on people who are struggling with inflation, so the current government has released a “mini-budget” to bring in Rs170 billion.

The Federal Board of Revenue (FBR) has issued an SRO that raises the general sales tax (GST) from 17% to 18%. This will bring in Rs115 billion in taxes, and the remaining Rs55 billion will come from other measures related to the Finance (Supplementary) Bill 2023.

In the notification, the top person in charge of collecting taxes said that the 18% GST would apply to consumer packaged goods, which include a wide range of everyday items.

If the GST goes up, the prices of the following things will go up:

Edible oil
Biscuits
Jam
Jelly \sNoodles
Toys for kids
Chocolates
Coffee
Make-up
Shampoos
Creams
Lotion \sSoap
Toothpaste
Hair colour
Cream to get rid of hair
Hair gel
Foam for shaving
Shaving gel
Cream for shaving
Shaving blades
Computers \sLaptops
Electronic gadgets
Smartphones \siPods \sTVs
LEDs \sLCDs
Juicers
Blenders
The rest of the electronic stuff
Washes for cars
Polishing a car
Perfumes
Perfumes with names
Besides these steps, the government will also raise the GST from 17% to 25% on luxury items. Federal Excise Duty (FED) on business and first-class air tickets will go up to Rs20,000 or 50%, whichever is higher.

Wedding halls will also have to pay a 10% advance income tax that can be adjusted. The FED on soft drinks and sugary drinks will also go up, as will the FED on cement.