In response to the high levels of inflation faced by Pakistani citizens, the government is considering increasing the tax exempt income threshold for salaried individuals in the upcoming fiscal year.
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Pakistan’s CBU car imports plummet by 81% amid government restrictions
KARACHI: Pakistan’s import of completely built unit (CBU) cars dropped by 81% during the first nine months of fiscal year 2022/2023 due to government restrictions aimed at supporting the country’s balance of payments.
Data released by the Pakistan Bureau of Statistics (PBS) on April 18, 2023, revealed that CBU car imports plunged to $47.31 million during the first nine months of the current fiscal year compared to $244.56 million in the same period of the last fiscal year.
The federal government had imposed a ban on the import of luxury and non-essential items on May 19, 2022. The ban was lifted on August 20, 2022, following a demand from the International Monetary Fund (IMF). However, car imports remained negligible, recording a 95% decline in September 2022 compared to the same month of the previous year.
During July to March of the current fiscal year, the overall import payment of CBU vehicles declined by 71% to $139 million compared to $480 million in the same period of the previous fiscal year. The import of CBU buses, trucks, and other heavy vehicles also recorded a decline of 52% to $1.35 billion during the period under review compared to $2.82 billion in the same quarter of the last fiscal year.
Meanwhile, the import payment for Completely Knocked Down (CKD) cars fell by 48% to $361.35 million during the first nine months of the fiscal year 2022-2023. CKD units are the basic raw material for the local assembly of cars.
As a result of the restrictions imposed by the State Bank of Pakistan (SBP) on the import of CKD kits, car manufacturers in Pakistan have observed temporary halts in production. Many other car makers have also announced temporary shutdowns due to insufficient inventory. The restrictions on CKD unit imports have also impacted the domestic sales of locally manufactured cars.
Pak Suzuki announces massive Rs13 billion loss in Q1 of 2023
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Pakistan petroleum prices may increase further with expected tax exemption withdrawal
Pakistan’s petroleum prices may increase further as the government is likely to withdraw the sales tax exemption on the supply of petroleum oil lubricants (POL) products.
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FBR adds wheat, sugar and urea in essential items list to combat smuggling
The Federal Board of Revenue (FBR) has recently made an amendment to the Customs Act, 1969, which now includes wheat, sugar, and urea in the list of essential commodities.
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FBR to collect duty and taxes on April 29-30 to compensate for Eid Holidays
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday announced that it will be collecting duty and taxes on April 29th and 30th, 2023, to cover up time lost due to Eid holidays.
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SRB issues updated sales tax rate of 19.5% on telecom services
KARACHI: The Sindh Revenue Board (SRB) on Monday notified updated sales tax rate of 19.5% on telecommunication services.
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FBR officers face penal action for failure in filing asset declaration
Senior officers of the Federal Board of Revenue (FBR) in Pakistan could face penal action for failing to file their asset declarations.
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Inflation spoils Eid shopping for many Pakistanis as prices skyrocket
Eid-ul-Fitr, one of the most celebrated festivals in Pakistan, is just around the corner. However, this year, the festival is marred by the specter of inflation, which has cast a shadow over Eid shopping.
The prices of essential commodities, including food, clothing, and cosmetics, have skyrocketed, making it difficult for the common people to buy and celebrate the festival with the same fervor as in previous years.
The headline inflation based on Consumer Price Index (CPI), increased to 35.4 percent on year-on-year basis in March 2023 as compared to an increase of 31.5 percent in the previous month and 12.7 percent in March 2022, according to data released by Pakistan Bureau of Statistics (PBS).
The situation has become so dire that even the traditional Eid sweets and snacks have become out of reach for many. The prices of dates, a staple food item during Ramadan and Eid, have increased by 40 to 50 percent in just one year. The prices of sweets, including gulab jamun, barfi, and laddoo, have also increased by almost 30 percent.
Similarly, the prices of clothes have also surged, and the quality of the fabrics has decreased. Many shopkeepers have admitted to selling fake or low-quality products to meet the demand for cheap clothes. This practice not only deceives the customers but also harms the local textile industry.
The cosmetics industry is also not immune to the inflationary pressure. The prices of perfumes, makeup, and hair care products have increased by almost 20 to 30 percent. This has left many people with no choice but to opt for cheaper and low-quality products, which could lead to skin and hair problems.
The government has tried to control inflation by announcing various relief measures, but these measures have not been effective enough to mitigate the inflationary pressure. The central bank has raised the interest rate to control inflation, but this move has also led to an increase in borrowing costs for businesses, which could result in a slowdown of economic growth.
The common people, especially the middle and lower-income groups, are feeling the brunt of the inflation. They are finding it difficult to make ends meet, let alone indulge in Eid shopping.
The government needs to take more effective measures to control inflation and provide relief to the people, especially during festivals like Eid. The government should focus on promoting local industries, providing subsidies to small businesses, and improving the quality of essential commodities to make them more affordable for the common people.
In conclusion, Eid-ul-Fitr, which is a time of joy and celebration, has been dampened by the inflationary pressure. The government needs to act urgently to control inflation and provide relief to the people, so that they can celebrate the festival without worrying about the high prices of essential commodities.
Pakistan establishes national task force for adopting Artificial Intelligence
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President Alvi orders genuine tax refund cannot be refused after late filing claim
President of Pakistan, Dr. Arif Alvi, Sunday ordered that a genuine tax refund cannot be refused even after late filing of a claim.
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Govt increases petrol prices by Rs10 ahead of Eid-ul-Fitr
The government Saturday announced an increase of Rs10 per liter in petrol prices ahead of Eid-ul-Fitr, a Muslim festival celebrated worldwide.
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