The National Board of Revenue (NBR) wants to increase the value-added tax (VAT) on eateries from 5% to 7.5%. The VAT rate for hotels without air conditioning may also increase from 7.5% to 15%.
In addition, the 7.5% VAT on both branded and non-branded clothing items may high to 15%, according to NBR experts.
The 5% VAT rate for trading can increase to 7.5%. VAT may potentially increase in the pharmaceutical sector.
likewise an extra tax rate will be raised at the import stage for seven products, including paint, soap, detergent, and betel nut.
Also, the NBR wants to raise the current excise tax on airline tickets. Additionally, there will be an increase in the VAT and supplemental charge on tobacco items.
A standard rate of 15% will be used in the meantime, and the shortened VAT rates on forty-three categories of goods and services will be eliminated.
Source: The Business Standard
