Pakistan: Income tax measures, increases in sales and excise tax rates in “mini budget”
Increased rates of federal excise duty and goods and services tax (GST)
Increased rates of federal excise duty and goods and services tax (GST)
The government on 14 February 2023 issued two statutory regulatory orders (SRO 178(I)/2023 and SRO 179(I)/2023), and then on 15 February 2023 presented the Finance (Supplementary) Bill 2023—often referred to as the “mini budget”—in both houses of the Parliament.
The SROs increase the rates of federal excise duty (FED) and goods and services tax (GST).
The bill includes measures regarding:
- Income tax
- Income tax withholding on purchase of shares
- Taxation of capital gain on certain securities
- Reintroduction of advance tax on functions and gatherings
- Increasing sales tax rates
- Increasing federal excise duty rates
The bill’s proposed measures would become effective the day following assent by the president.
Read a February 2023 report [PDF 528 KB] prepared by the KPMG member firm in Pakistan
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