Prime Minister Nawaz Sharif Wednesday approved Rs40 billion new revenue generation measures, including imposition of regulatory duty (RD) on luxury items, withdrawal of a few income tax exemptions and enhancement in the rates of excise duty on some items. Sources told Business Recorder that a meeting of the Economic Co-ordination Committee of the Cabinet is likely to be convened on coming Friday to approve imposition of the RD on luxury items.
The FBR will issue The Statuary Regulatory Order (SRO) following approval from the ECC in this regard. The remaining measures require promulgation of an ordinance. Finance Ministry and senior FBR officials met Nawaz on Wednesday and presented the new revenue generation measures for 2015-16, which were approved.
The government has also decided to restore regulatory duty on the import of goods on which RD was abolished in the past.
It is expected that the FBR would increase regulatory duty from 5 to 10 percent on the import of luxury and non-essential items under SRO. 568(I)/2014. The items subjected to 10 percent RD would be subjected to 15 percent RD. The revenue generation measures may include major changes in the SRO. 568(I)/2014 relating to the imposition of regulatory duty on the import of luxury and non-essential items.
The increase in the rates of the FED on beverages and cigarettes has also been proposed. A few income tax exemptions are also expected to be withdrawn, sources added.