Government plans to raise taxes on cellphones, cars and other imported items

ISLAMABAD: Taxes on cellphones and vehicles over 1000cc are to be doubled as the federal government plans to increase duties on imported goods, ARY NEWS reported.

According to the proposed increase in the tax on imported items, the government has planned to increase the statutory duty on tires by 50%, machinery by 10% and household appliances by 50%.

According to sources within the FBR, an increase of 30% in regulatory duties on machinery related to electricity generation and 10% on steel products is also proposed for the 2022-23 budget.

“100% statutory duties will be increased on vehicles over 1000cc,” they said, adding that duties on mobile phones would also be doubled and he proposed to raise them from Rs6,000 to Rs44,000.

He went further propose that statutory duties on imported tiles should be increased by 40%.

According to sources, the measures are aimed at minimizing the current account deficit which has ballooned due to rising imports into the country.

It is relevant to mention here that the government’s indecision on key measures to stop the US dollar’s upward slide led to a streak of the greenback’s rise against the rupee on Wednesday as it hit an all-time high of 200 rupees on the open market.

According to the Forex Association of Pakistan (FAP), the greenback gained Rs1.68 in the interbank market from the previous day’s close of Rs196.50 and climbed to Rs197.66 around 11:26 am.

Traders said the US dollar gained 2 rupees in intraday open market trading to trade above 200 rupees.