‘Mini budget’: President Alvi approves Finance Supplementary Bill 2023
ISLAMABAD – President Arif Alvi on Thursday accorded approval to the Finance Supplementary Bill 2023.
The approval has been given in accordance with Article 75 of the Constitution. The bill envisages additional taxes and duties of Rs170 billion to materialise the understanding reached with the International Monetary Fund (IMF) for the Extended Fund Facility (EFF).
On Feb 21, the National Assembly passed the Finance (Supplementary) Bill, 2023,” proposing additional taxes and duties of Rs170 billion to fulfill the obligation. According to the bill, General Sales Tax (GST) will be increased from 17 per cent to 18pc. It has been decided to enhance the GST on luxury items from 17pc to 25pc.
For the air travel, it has been proposed that a fixed amount of Federal Excise Duty (FED) ranging from Rs75,000 to Rs250,000 of different tiers as per the International Air Transport Association on airfare for first, business and club classes should be imposed.
Besides, 10pc withholding adjustable advance tax will be levied on the bills of wedding halls in order to promote simplicity and austerity. The FED will be enhanced on sugary and aerated drinks, while FED will be increased on cement from Rs1.5 to 2 per kilogrammes.
