The government is considering raising the import tax on cellphones, food, and other luxury goods, as well as prohibiting the entry of some luxury goods.
The government aims to implement these tough steps to limit the soaring import bill and widening trade imbalance, according to official sources in the Ministry of Finance.
Because the import cost for smartphones, vehicles, and food has surpassed $11 billion, an increase in the tax on mobile phones has been recommended, as well as a complete prohibition on the import of cars. Smartphones worth $1.81 billion were imported in the last ten months, while automobile imports cost $1.66 billion.
According to the sources, food imports totaled $7.74 billion between July and April, and it has been requested that the tax on food imports and other luxury products be raised.
Furthermore, in the first ten months of the current fiscal year, the import cost for petroleum goods, including crude oil and gas, surpassed $17 billion. According to the sources, the rise in crude oil prices on the international market has resulted in a doubling of Pakistan’s petroleum import cost.
To read our blog on “Legalizing the crypto trade could generate Rs. 20 billion in taxes,” click here.
