ISLAMABAD – In the upcoming fiscal year 2022-25 budget, a proposal has been made to increase sales tax on most essential items including sugar and ghee.
The sources said that the sales tax on sugar is expected to rise from 18% to 19%, which could increase the price of sugar by up to 5 rupees per kilogram.
They said that A one % increase in sales tax could make ghee more expensive by 5 to Rs7, soap by Rs2 to Rs5 and shampoo by Rs15 to Rs20.
Due to the increase in sales tax, the most spice items, tea, coffee, dozens of branded baking items, noodles, pasta and children’s breakfast items like jam, jelly, and marmalade are likely to become more expensive.
Similarly, a one % increase in sales tax could raise the prices of hundreds of electronic items. The increase in sales tax is expected to make makeup items, clothes, and leather products more expensive.
The sources said that a one percent increase in sales tax could also make tissues, paper napkins, baby diapers, utensils, smartwatches, and watches more expensive.
