Bowing down to the tough conditions laid out by the International Monetary Fund, Prime Minister Imran Khan has summoned a meeting of the federal cabinet today to finalise the mini-budget.
The meeting with Imran Khan in chair will be held at 2 noon to approve Finance (Supplementary) Bill 2021. Following the approval, the Finance Amendment Bill 2021 will be unveiled in the National Assembly.
The meeting will be preceded by a meeting of the PTI Parliamentary Party chaired by Prime Minister Imran Khan in which members of the Assembly will be briefed on the mini-budget.
According to sources, the prices of power, gas and petroleum products will increase due to the mini budget that include tough conditions of the IMF, while taxes and duties on more than 1700 items will also be increased in the mini budget and taxes on all imported and luxury items will be increased.
Taxes and duties on luxury items, imported diapers, make-up items will be increased and taxes on imported and domestic vehicles will also increase.
Sources further said that the total revenue from taxes and duties will be Rs 340 billion and sales tax rate is likely to be raised to 17%, while the tax rate on various items may increase from 5 to 7%. The federal excise duty on cars likely to increase 2.5 percent and sales tax on tractors is likely to increase by 5%.
Customs duties on imported clothing, footwear and perfumes are likely to be increased, while Sales tax on locally made goods is also likely to be increased from 12% to 17%.