The federal government presented the supplementary finance bill 2021 before the Parliament for withdrawal of General Sales Tax (GST) exemptions and proposed imposition of 17% tax on nearly 150 items on Thursday.

According to the details of the bill, 17% GST will be imposed on 140 essential consumable and industrial goods.

Here is a list of items that will witness a price hike following the approval of the supplementary finance bill — termed by the Opposition as a “mini-budget“.

• Imposition of advance tax on foreign-produced TV dramas and serials as well as advertisements starring actors from other countries (PKR 3mn per episode on plays and PKR 5mn per second on actors);
• 17% GST will be imposed on items sold in bakeries, restaurants, and sweet shops, foodstuff served in-flight kitchens, sausages and products of poultry meat locally produced crude vegetable oil, cereals, and openly-sold red chillies.
• Tax rate on import of oil seeds will go up from 5% to 17%.
• The GST on silver and gold will increase from 1% to 17%.
• Goods received as gifts from a foreign government or organisation will be taxed at 17%.
• Items sold in sachets to be subjected to a GST of 17% against 8% previously.
• Seeds, plants, tools and chemicals of the agriculture sector will also be subjected to 17% GST.
• 10% sales tax to be imposed on imported vegetables.
• 10% tax to be levied on flour mills.
• 5% tax on fitness centres, laundries, beauty salons, travel agencies, industrial machinery workshops and automobile workshops located in ICT.
• 5% tax will be levied on imported laptops, personal computers and notebooks.
• Cottonseed is proposed to be taxed at 17% GST. 

Telecommunication and Information Technology

• Finance bill proposes an increase in income tax on cellular services (mobile phone calls) from 10% to 15%.
• Proposes an increase of 5% withholding tax (WHT) on telecom services.

Automobile assemblers and parts manufacturers

• Sales tax on batteries will be increased from 12% to 17%.
• GST to be increased on locally-manufactured cars above 850cc from 12.5% to 17%.
• Services provided by car/automobile dealers in ICT will be taxed at 5%.
• 17% GST will be imposed on hybrid electric vehicles over 1,800cc.

Pharmaceutical

• Imposition of 17% GST at the import stage on raw materials of medicines.

Food and Dairy

• 17% GST will be imposed on processed milk and dairy items sold in branded packaging as well as items sold in restaurants and sweet shops.
• 17% GST will be imposed on imported animals and livestock.
• 17% sales tax will be levied on poultry machinery.
• 17% GST will be imposed on imported infant formula milk, which is currently being subjected to no GST.