ISLAMABAD – Pakistan is gearing up to present Budget 2024-25, with prices of several items including some of basic commodities are expected to increase in coming budget, especially in times when food prices are already high amid currency devaluation and other factors.
The government is also seeking another bailout from IMF to tackle the massive balance-of-payments crisis, and the lender tabled several suggestions including ending subsidies.
Sources familiar with development revealed that tea, sugar, rice, flour, milk, and packed dairy items are expected to go up in the budget 2024-25 lender asked government further to make changes in sales tax.
The Pakistani government has been told to introduce around ten percent sales tax on zero sales tax sector by June 30.
In the budget proposals, the government is also planning to gradually remove exemptions on sales and income tax. With the imposition of sales tax, tractors and pesticides will get expensive as it could result in increased prices for these crucial agricultural items.
Read More: ‘Govt employees likely to lose medical allowance, house rent in subsidies in upcoming budget’
With imposition of more taxes imported purses, makeup products, glasses, fragrances, headphones, bath fittings, imported sanitary products, some electronic appliances, imported hair dyes will become more expensive.
The decision regarding tax changes are yet to be finalised in coming days. The budget is expected to be delayed for some days due to Prime Minister Shehbaz Sharif’s visit to China.
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