The government has introduced new tax measures to raise Rs1.761 trillion for the next fiscal year, which could lead to increased inflation.
Key changes include removing many sales tax and customs duty exemptions, which will especially affect the health and poultry sectors and potentially cause price hikes. Income tax rates for salaried individuals and non-salaried individuals will increase, expecting to generate additional revenue. Capital gains and property transactions will also face higher taxes, with different rates based on whether individuals file tax returns.
New sales taxes will be applied to various goods such as stationery, plant machinery, and certain foods, and excise duties will increase on items like nicotine products and cement. Custom duties will rise on numerous tariff lines, and fewer concessions will be available for hybrid and electric cars. These measures, coupled with improved enforcement and documentation, aim to meet the revenue target but are expected to place a greater financial burden on consumers and businesses.