The Chairman of the Federal Board of Revenue (FBR), Amjad Zubair, announced that the new price range will impose an 18% income tax on all primary packaged goods, including lentils and rice. During a meeting of the Senate Standing Committee on Finance, Committee Chairman Saleem Mandviwalla announced the Budget Shock.
In his briefing to the committee, Chairman Amjad Zubair clarified that the 18% General Sales Tax (GST) might apply to all packaged gadgets offered in branch shops and huge shops. However, unpackaged objects sold in ordinary shops will no longer be subject to this extra tax. This measure aims to standardize the taxation method across specific store styles and ensure that larger stores contribute fairly to tax sales.
During the meeting, Chairman Zubair also addressed the issue of the 18% GST imposed on children’s packaged formula milk. The Finance Committee has recommended reducing this tax. The current 18% GST is applied to locally processed milk, and the committee discussed the impact this tax has on consumers, particularly on families with young children. Chairman Zubair noted that companies selling children’s packaged milk through unregistered dealers and distributors would be blocked for tax evasion if they sell to unregistered outlets.
Senator Naek: Reevaluate Sales Tax to Relieve Consumers
Senator Farooq Naek highlighted that sales tax is an indirect tax that ultimately burdens consumers. He suggested that reevaluating the tax could benefit consumers, especially those purchasing essential items like milk for their children.
Senate Committee Chairman Saleem Mandviwalla expressed concern over the increasing prices of packaged formula milk. He pointed out that most women in the country rely on formula milk for their children, and companies producing it have raised prices for the past three to four years. This price hike and the high GST place a significant financial strain on families.
Chairman Amjad Zubair responded by stating that companies have raised the price of a box of milk to 800 rupees and are now demanding a tax reduction. In light of the Budget Shock, He suggested that if the companies reduce packaged milk costs, the FBR would consider lowering the tax. He proposed reducing the price based on the 18% GST applied to a box priced at 600 rupees.
The assembly concluded with a consensus that at the same time as the taxation measures are necessary for revenue technology, there should be stability to ensure that crucial objects stay lower priced for the general public. The FBR and the Senate Committee on Finance agreed to paintings collectively to discover an answer that could alleviate the financial burden on purchasers while maintaining the essential tax revenue.
