Items that will be pricier after Federal Budget 2019-20
The federal government announced a Rs 7,022 billion austerity budget for the fiscal year 2019-20. After the budget 2019-20, some of the products will be pricier.
State Minister for Revenue Hammad Azhar presented the budget setting Rs 5,555 billion targets for the Federal Board of Revenue.
Increased taxes on cooking oil, ghee, sugar, juices and soft drinks, cigarettes, compressed natural gas (CNG), liquefied natural gas (LNG), cement and vehicles were suggested by the government. Taxes on marble, gold, silver, diamonds, and jewelry were also improved in addition to these.
Chicken, mutton, fish products
The budget proposed sales tax of 17 percent on semi-processed and cooked chicken, mutton and fish goods.
Tax on milk, cream
The new budget proposed that 10% of the identical tax on milk, cream, and powdered milk should be imposed.
Tax on cigarettes
According to the state minister for revenue, FED on an upper slab of cigarettes has been increased from Rs4500 to Rs5200 per 1000 sticks.
He said the lower two slabs have been merged with a duty of Rs1650 per 1000 sticks.
Azhar said that 8 percent sales tax on sugar has been increased up to 17 percent, after which the price of sugar is likely to be increased by more than Rs3.5 per kg.
Duty on vehicles
The government imposed a tax of 2.5% on cars up to 1000cc, 5% on 1001-2000cc cars, and 7.5% on cars with more than 2000cc motor power.
CNG and LNG
The government increased CNG price for Region-1 from Rs64.80 to Rs74.04 per kg, whereas for Region-2 it was increased from Rs57.69 to Rs69.57 per kg.
Similarly, the federal excise duty on the import of LNG was increased to Rs10 per MMCFD.
The budget imposed 17 percent sales tax on the marble industry, besides increasing federal excise duty on cement from Rs1.5 per kg to Rs2 per kg.
Decrease in taxes
A decrease in taxes on a few items was also suggested in the new budget. The government suggested ending 3 percent value added tax on the import of mobile phones.
Apart from this, it suggested ending value addition taxes on all petroleum products imported by oil marketing companies.