The budget for the fiscal year 2019-20 has been officially approved and signed by the President of Pakistan, Dr Arif Alvi.
Following the budget 2019-20, the Federal Board of Revenue (FBR) issued a notification for new taxes on 569 different luxury/imported items, which means consumers of these items will be required to pay additional regulatory duties on these goods.
The regulatory duty (RD) imposed on these items ranges from a minor 5% to a whopping 90% on some of the imported products.
The new tax regime is in effect from July 1, 2019 and will be applicable until June 30, 2020.
List of Affected Items
The items which are affected the most include cosmetics, imported goods of domestic usage and edible products.
Here’s a list of items and the duty imposed on them:
|Cheese and Curd||50 percent|
|Natural Honey||30 percent|
Cashew Nuts (Fresh and Dried)
|Fruit Juices||60 percent|
|Instant Coffee (Bulk)||15 percent|
|Soups and Broths
Homogenized Composite Food Preparations
|Ice Cream||20 percent|
|Paints and Varnishes||5 percent|
|Perfumes and Eau De Toilette||50 percent|
|Wall coverings and Window Transparency Papers||30 percent|
|Energy-Saving Lamps||2 percent|
|Household and Toilet Articles other than Porcelain or China||20 percent|
|Apparel and Clothing Accessories||10 percent|
|New Minivans and 4×4 Vehicles (CBU)||15 percent|
|New Sport Utility Vehicles||15 percent|
|New Sport Utility Vehicles (SUVs 4×4)||90 percent|
|1000CC-1300CC Vehicles||15 percent|
|Old and Used Cars and Jeeps of 1801CC-3000CC
Old and Used Vehicles over 3000CC
|Bicycles and other Cycles including tricycles||10 percent|
Accessories and Other items
Audio-Frequency Electric Amplifiers
Electric Sound Amplifier Sets
Kits not specified
|Pocket and other watches with metal clad||30 percent|
Many of these imported items are goods of regular use in most households. Do you think the new taxes introduced in the budget 2019-20 will increase the burden on the salaried class population’s shoulders even more?
Let us know in the comments!
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