Islamabad: The Pakistan-based The Dawn daily reported that the Pakistani government hiked the General Sales Tax (GST) to 18% from 17% along with federal excise charge on Wednesday, adding to the woes of consumers.
Despite a rise in the value of the Pakistani rupee (PKR), the nation's producers have yet to lower costs for the public.
Umer Islam Khan, the general secretary of the Pakistan Vanaspati Manufacturers Association, predicted that after the GST increase, the price of ghee and cooking oil would increase by PKR 3-5 per kg/litre.
He said, commercial banks continue to be reluctant to open letters of credit (LCs) for the importation of edible oils. With the opening of LCs, goods typically take 45 to 60 days to reach Karachi ports, according to the Dawn daily.In Ramazan, there would be a shortage of ghee/cooking oil if this situation continues, he said.
In an effort to curry favour with the International Monetary Fund (IMF) for releasing the crucial loan tranche, Pakistan on Wednesday night increased the price of gasoline and gas to an all-time high, reported Geo News, hours after releasing a tax-laden mini-budget.
According to a press release from the Finance Division, the price of gasoline has increased by PKR 22.20, to PKR 272 per litre, and the rise is the result of the rupee's depreciation against the dollar.
A 25% tax increase on luxury goods was also proposed in the financial plan, along with increases in levies on cigarettes, sugary drinks, and first- and business-class air travel.
Also, a 10% adjustable withholding tax on wedding venues and other events has been proposed by the government.
The government recommended raising the overall amount of handouts under the Benazir Income Support Programme (BISP), a welfare programme, from 360 billion to 400 billion rupees in order to counteract the inflationary effects of the budget.
Moreover, the tax on cement was reinstated to its pre-COVID amount of 2 rupees per kilogramme. The government has also explored directly implementing the bill through a Presidential Order in order to pass it from parliament as quickly as possible.
After an increase of PKR 17.20, the cost of high-speed diesel has risen to Rs 280 per litre. With an increase of PKR 12.90, kerosene oil is now sold for PKR 202.73 per litre. Light diesel oil, meanwhile, will cost PKR 196.68 per litre following a PKR 9.68 hike.
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