cell phones, cars, and luxury items are to be taxed more in the new budget for 2023-24
ISLAMABAD: The federal government has proposed a further increase in taxes on cellphones, cars, and other imported luxury items in the upcoming budget for FY2023-24.
According to sources, the government is considering raising customs duty on the import of mobile phones worth 100 dollars each.
Imported energy saver bulbs, chandeliers, and LEDs will be more expensive in the upcoming budget FY23-24.
The government wants to generate revenue of Rs 45 to 55 billion by keeping the ratio of sales tax at 25% on the luxury items in the budget.
Moreover, a 25% sales tax will be applied on imported branded shoes, purses, sunglasses and perfumes, headphones, iPods, and speakers.
Also, a high tax rate will be charged on imported doors, windows, bath fittings, imported tiles, and sanitary.
Separately, the federal government is expected to allocate Rs102.86 billion for the power sector projects in the upcoming budget 2023-24.
New Budget will be announced on June 9
The coalition government is expected to announce a Rs 13-15 trillion budget for the financial year 2023-24.
The tax and non-tax revenue target for 2023-24 is expected around Rs 9 trillion. It will be higher by 21 percent in comparison with Rs 7.5 trillion targets for the outgoing fiscal year 2022-23.
The tax revenue collection target for 2023-24 would be 29 percent higher than the estimated tax collection in FY22-23.
Revenue targets in the past have also varied by an average of 8% in the last five years from actual targets. “We expect the same to happen in FY24 amid the economic slowdown,” it added.
Meanwhile, in FY24, the non-tax revenue target is expected around Rs2.5 trillion, 900 billion rupees u from the Rs1.6 trillion target for 2022-23.
