ISLAMABAD: The federal government has proposed major changes in tax policies for the fiscal year 2024-25, including doubling the sales tax on computers and laptops from 5% to 10%, and imposing an 18% sales tax on mobile phones.
The decision to increase sales taxes on these electronics aims to bolster government revenue but is expected to lead to higher prices for consumers.
Finance Minister Senator Muhammad Aurangzeb also announced substantial relief measures for government employees, with salary increases of up to 25% proposed for grades 1-16 and 20% for grades 17-22. Pensions for retired employees are set to rise by 15%, and the minimum monthly wage has been raised from Rs 32,000 to Rs 37,000.
Addressing concerns over financial challenges, Minister Aurangzeb acknowledged the hardships faced by government employees and emphasized steps taken to alleviate them.
Additionally, the government plans to impose strict penalties on retailers found selling counterfeit, smuggled, or untaxed cigarettes. This initiative is part of broader efforts to combat illicit trade practices that undermine tax revenues.
The National Assembly session, where these proposals were presented, commenced with a delay due to dissatisfaction from key coalition partner Pakistan Peoples Party (PPP). Prime Minister Shehbaz Sharif was present during the session.
