Tax On Luxury Items to Remain Unchanged in Federal Budget 2023-2024

The federal government is all set to announce the FY2023-24 budget today at 4:00 pm with a total outlay exceeding Rs13,800 billion. Some reports claim that the federal government is likely to keep a 25% sales tax on luxury items in the federal budget 2023-2024.

Federal Budget 2023-2024: Tax On Luxury Items Is Tipped To Remain Unchanged

Back in February, the government smashed 25pc tax on luxury items in the mini-budget. It seems that now it has decided to make it part of the Finance Bill. According to the latest reports, the federal government is predicting to generate Rs 45 to 55 billion in revenue from the sales tax on luxury items.

In addition to that, the government is considering increasing its duty on mobile phones as well. It is expected to be worth more than 500 dollars in the next budget. However, the Federal government has decided to keep 25pc sales tax on imported electronic items. The point worth mentioning here is that the 25 sales tax will remain unchanged on imported cosmetic items for women including makeup, hairdryers, hair straighteners, hair colors, hair vitamins, creams, and others. Other luxury items on which 25% sales tax will be kept include imported branded shoes, branded purses, imported sunglasses and perfumes, branded headphones, iPods and speakers, imported doors and windows, imported bath fittings, imported tiles, and sanitary, sunglasses, shampoo, soaps, lotions, shaving gels, lights, carpets, and others.

25% sales tax will remain unchanged on all imported stuff whether it is food or any other stuff. Imported spring mattresses, pillows, mineral water, imported cars, chocolates, imported candies, toffees, imported frozen fish, mushrooms, and others. The government is ready to announce budget very soon. Stay tuned to get more updates.

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