ISLAMABAD: The standard rate of sales tax would remain unchanged at 18 percent from July 1, 2024. Sources told Business Recorder that the budget proposal of raising sales tax rate from 18 to 19 percent was again discussed between the Federal Board of Revenue (FBR) and top government decision makers. The government has again rejected the proposal and the 18 percent sales tax would continue from next fiscal year (2024-25).

Prime Minister Shehbaz Sharif has rejected this proposal of raising the standard rate of sales tax from 18 to 19 per cent.

FBR finalises revised GST schedules for budget

The FBR had suggested a 1 per cent increase in the sales tax rate, projecting an additional revenue generation of Rs40-50 billion for the fiscal year 2024-25. However, Prime Minister Sharif declined this proposal, citing the potential for immediate inflationary effects on the general public.

Copyright Business Recorder, 2024