Government Decides Against Raising General Sales Tax Rate in New Budget

The proposed 1 percent increase in the sales tax rate from 18 to 19 percent will not be implemented through the upcoming Finance Bill 2024 due to its potential inflationary impact on the general public.

As a result, the sales tax rate is expected to remain unchanged in the 2024-25 budget.

The Federal Board of Revenue (FBR) had suggested this 1 percent increase, projecting additional revenue generation of Rs. 40-50 billion for the fiscal year 2024-25. However, Prime Minister Shehbaz Sharif declined the proposal, citing the potential for immediate inflationary effects on the general public.

The proposal to raise the sales tax rate from 18 to 19 percent was again discussed between the FBR and top government decision-makers. The government has once again rejected the proposal, ensuring that the 18 percent sales tax rate will continue into the next fiscal year (2024-25).

What's your reaction?

Related Posts

Qalam Kahani We would like to show you notifications for the latest news and updates.
Allow Notifications