In the mini budget, approval has been sought to increase the sales tax on luxury items from 17% to 25%.
According to the documents, the rate of sales tax on hundreds of luxury items is being increased to 25%, the revenue of 15 billion rupees is expected in 4 months from increasing the sales tax.
The above mentioned luxury items include imported mobile phones worth more than 500 dollars, while sales tax is being levied at 25% on imported electronics items.
Imported make-up products, imported pet food, imported branded shoes, branded purses, imported shampoo, soap, lotion, shaving cream, shaving gel, imported sunglasses, perfumes, imported private arms, imported branded headphones, iPods and speakers are subject to a sales tax of 25%.
Various items include imported traveling bags, suitcases, luxury utensils, imported tiles, sanitary ware, imported furniture and wooden showpieces, imported mineral water, energy drinks, imported juices, imported vehicles, imported musical instruments, imported biscuits, cakes and bakery items.
Federal Board of Revenue (FBR) sources say that the notification of increase in sales tax will be issued soon.
