Budget 2023-24: Consumer goods that will become more expensive

ISLAMABAD: The federal budget presented by the Pakistan Democratic Movement (PDM) government witnessed an increase in the taxes of various sectors including auto, dairy products and branded garments, ARY News reported on Saturday.

According to the details, Finance Minister Ishaq Dar presented a budget of Rs. 144.60 Trillion for the fiscal year 2023-24 in the National Assembly, raising the sales taxes by 12 to 18 per cent in various sectors.

On the other hand, the finance minister announced a 35 per cent adhoc relief allowance will be given to federal government employees of scale one to 16, while 30 per cent of adhoc relief will be given to employees of scale 17 and above.

READ: CM Murad Ali Shah unveils Rs2.24 trillion Sindh budget

After imposing an 18 per cent sales tax on various sectors, Tetra Pack milk, packed yoghurt, packaged butter, and cheese will become expensive. Additionally, the prices of container-sealed fish, packaged chicken meat, and cartons of eggs will also become costly.

The federal minister recommended that raise GST from 12 per cent to 15 per cent for retailers of branded textiles and leather goods.

There will be a 7 per cent increase in tax on cars exceeding 1300cc, while the duty and taxes capping on vehicles of more than 1300CC has been abolished, making cars more expensive.

Special subsidies will be provided on potatoes, ghee, rice, sugar, and lentils at utility stores, meanwhile, duties on solar panels and batteries and other raw materials have also been eliminated, making solar panels cheaper, while duties on diaper manufacturing raw materials have been abolished, resulting in cheaper diapers.

A sales tax of 18 per cent has been imposed on the purchase of spices, ghee, and cooking oil for hotels, and a fixed tax of Rs. 2000 has been levied on old technology fans.

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