Deluge of inflation certain as FBR prepares draft of mini-budget
· Board suggests withdrawal of Rs350b tax exemptions
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In the light of instructions by the International Monetary Fund (IMF), the federal government has decided to withdraw tax exemptions of Rs350 billion in the mini budget it plans to present, reported 24NewsHD TV channel on Monday.
Quoting sources, the channel reported that as per the recommendations prepared by the Federal Board of Revenue (FBR) for the budget, the government was going to increase sales tax on scores of goods, which would eventually unleash a storm of inflation on masses.
Sources added that there was a proposal to increase sales tax on books and dozens of stationery items by 17 per cent.
Similarly, the Board has recommended 17 per cent hike in sales tax on poultry items, eggs, meat, vegetables, fruits and pulses.
Likewise, there is a proposal to levy 17 per cent more sales tax on dozens of electronic goods.
The FBR has also suggested 17 per cent increase in sales tax on silver, jewellery and precious stones. Sources further disclosed that the government had also decided to increase sales tax on Lunda Bazaar clothes and shoes by 17 per cent.
17 per cent hike in sales tax had also been proposed on the animal as well as on poultry feed, they revealed.
Apart from that, the sources said, the Board had also recommended 17 per cent increase in sales tax on tractors and other machinery used in agriculture. Reporter: Waqas Azeem