Karachi – Amid inflationary pressure across the country, the collection of various taxes and duties on basic food items and daily necessities continues, while no final decision has been taken at the government level regarding reduction or relief in these taxes in the upcoming federal budget.
According to available official documents, 20 percent customs duty and 4 percent additional customs duty are imposed on white crystalline sugar. In addition, 18 percent sales tax is also imposed on sugar, vegetable ghee, cooking oil and tea leaves, which is significantly increasing the purchasing cost of consumers.
According to the documents, not only food items but also basic necessities like dry milk, prepared food, electricity and gas are included in the ambit of 18 percent sales tax. According to economists, high tax rates on utility bills and food directly affect household expenses.
According to information related to the health sector, one percent sales tax is also being levied on various types of medicines. Although this rate is lower than other goods, experts say that any level of additional financial burden on medicines can be a cause of concern for ordinary citizens.
The scope of taxes on poultry products is also wide. 20 percent customs duty and 4 percent additional customs duty are imposed on chicken, while customs duty ranging from 3 percent to 16 percent is being levied on eggs. According to documents, a regulatory duty is also imposed separately on eggs, which further increases the cost of imports.
Among agricultural products, 20 percent regulatory duty is imposed on potatoes, 5 percent customs duty on tomatoes and onions. Similarly, 10 percent customs duty is imposed on wheat and 5 percent customs duty on wheat flour. 10 percent customs duty is also maintained on rice.
In the edible oil sector, a customs duty of Rs. 10,500 per metric ton and an additional customs duty of 2 percent are imposed on crude soybean oil. Vegetable oil is subject to a customs duty of Rs 10,800 per metric ton, along with a 10 percent regulatory duty. Crude cooking oil is subject to a customs duty of Rs 8,000 per metric ton and an additional duty of 2 percent.
Economic circles say that the government will have to review these taxes in the context of inflation in the new fiscal year budget. Both the public and the business community are demanding that relief be provided to consumers by reducing taxes on basic necessities.
According to sources, consultations are underway in various government institutions in this regard, but no final decision has been taken yet on whether the current taxes imposed on basic food items and utility services will be reduced in the new budget or not. Due to this situation, the public and business circles are waiting for the budget announcements.
