The government increased the sales tax rate to 18 percent

Islamabad: The federal government set the GST rate at 18 percent under the one trillion rupees mini-budget agreed with the International Monetary Fund (IMF).

The government has started imposing new taxes to comply with IMF conditions, the FBR has increased the GST rate from seventeen to eighteen percent, while the federal excise duty rate on cigarettes has also increased to 150 percent. has increased to more than

A senior FBR officer told Express that not only the notification has been issued but also instructions have been issued to the field formations and the new rate of taxes has been implemented from today. In SRO No. 178(I) 2023 issued to increase the rate of federal excise duty, it is stated that the federal excise duty on cigarettes included in tier one has been increased from six and a half thousand rupees to sixteen and a half thousand rupees per thousand cigarettes, while tier two. The federal excise duty on cigarettes included in this has been increased from two thousand fifty rupees to five thousand fifty rupees per thousand cigarettes.

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Similarly, the general sales tax rate has been increased from 17% to 18%. In this regard, instructions have been issued to the field formations of the FBR to increase the GST rate to 18% instead of 17% after 12:00 on Tuesday night. The tax rate you have loaded has been changed in the Weboc system which will automatically start charging the new rate.