WEB DESK: Significant changes to the tax system are anticipated in the upcoming fiscal year’s budget, with proposals to increase excise duty and sales tax on various items.
It is recommended to impose a 5% excise duty on everyday consumer goods such as frozen foods, chips, soft drinks, noodles, ice cream, biscuits, and frozen meat. Additionally, there is a proposal to levy taxes on processed foods to boost economic revenue.
Changes are also expected in e-commerce and imports, with a proposal to impose an 18% sales tax on e-commerce transactions. Restrictions may be introduced on the import of vehicles older than five years.
Furthermore, there are suggestions to gradually reduce additional customs duties and streamline regulatory duties to support the auto sector. Modifications to the Customs Act’s Fifth Schedule and the removal of non-tariff barriers are also being considered.
There is a plan to reduce tariffs on old vehicles by 10% annually, with a target to lower the average tariff on the auto sector to below 6% by 2030.
