ISLAMABAD: Several key tax proposals have emerged ahead of the upcoming fiscal year’s budget, including possible relief measures for exporters, changes in import duties and revisions to taxation on selected sectors and products.
Under the proposed budget measures, the government is considering incentives aimed at boosting exports. A recommendation has been made to abolish the one percent advance tax currently imposed on exporters.
The proposals also include a reduction in import duty on cosmetic products, with the duty on imported makeup items likely to be lowered from 44 percent to 40 percent.
Tax relief is also expected for imported machinery and equipment used by beauty parlours, health and fitness facilities and medical clinics.
If approved, import duties on products such as sunblock, sunscreen, shaving cream, aftershave and lotions could be reduced, potentially making these items less expensive.
The budget proposals also suggest making it mandatory to print retail prices on products including infant formula milk, ketchup, ghee, cooking oil and tea leaves. The measure is aimed at improving sales tax collection on food items.
In addition, the government is considering increasing the climate levy on petroleum products and ending tax exemptions currently available for the merged districts of Khyber Pakhtunkhwa.
According to the proposal, the climate levy on petroleum products may be raised from Rs2.5 per litre to Rs5 per litre.
The proposed measures are part of the budget planning process and are subject to approval before becoming effective.
