New Taxes Imposed In Pakistan today 31 December 2021 for New Year 2022.

 New Taxes Imposed In Pakistan today 31 December 2021 for New Year 2022.

17% GST being levied on 144 products (which had no or less tax) today. The price increases will increase food insecurity in Pakistan/ Among these some notable are:

1. Infant/Baby Milk to now be taxed - Generating Rs. 15 Billion (17% on both raw material and 17% on Sale - so looking at a higher collective increase) - will increase stunted growth and malnutrition which is already a huge concern in the country. 

2. Mobile Phone Calls will be 5% more expensive

3. GST rate on cars of above 850cc will go up to 17%, CBU Units taxed at 17% from 5%

4. 17% GST on raw materials for pharmaceutical products for revenue worth Rs45 billion - Medicines which have already more than doubled in this government (Amir Kiani ki rishwat khori ke baad), will now get more expensive. 

5. Tax on Bread products prepared in bakeries (which were previously exempt) 

6. Red Chillis sold open will also be taxed at 17%

7. Cereals will be taxed at 17%. 

8. Tax on yoghurt, cheese, butter, cream, desi ghee, whey, milk and cream will go up from 10% to 17% making all these products more expensive.

9. Goods imported by or donated to federal and provincial hospitals will be taxed at 17% rate.

10. Contraceptives will be taxed as well. 

11. Iodized Salt, Uncooked Poultry Items and Cotton seed will all see taxes. 

12. GST on silver and gold will increase from 1% to 17% and articles of jewellery to 17%

13. Personal wearing apparel and bona fide baggage imported by overseas Pakistanis and tourists will also be taxed. (this is strange and not sure how this will be implemented... will wait for more clarity on this)

14. Personal computers, laptop computers, notebooks -- whether or not incorporating multimedia kit -- will also face the new taxation.

Bottom line: everything is about to get more expensive, particularly food, medicines and transport.

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