In anticipation of an increase in the sales tax rate in the upcoming fiscal year's budget, consumers brace for potential price hikes in essential items such as sugar, ghee, tea leaves, and makeup products. Sources reveal that an increase in the sales tax rate from 18% to 19% on sugar could raise its price by Rs. 5 per kilogram. Similarly, ghee prices may see a hike of Rs. 5 to 7 per kilogram, impacting household budgets significantly. Tea leaves, another staple in Pakistani households, are also expected to become pricier, although specific figures have yet to be disclosed. In addition to these essentials, makeup products are likely to see a notable increase in cost, affecting consumers across the board.

The federal cabinet is expected to approve these changes based on the recommendations of the Economic Coordination Committee (ECC) during the ongoing meeting. The final federal budget for the next financial year will be presented tomorrow, solidifying these proposed tax adjustments. Alongside these items, other products such as noodles, jam, jellies, soap, and shampoo are also anticipated to experience price increases due to the expected sales tax hike. Soap prices could rise by Rs. 2 to 5, and shampoo by Rs. 15 to 20, adding to the financial strain on consumers. As the government seeks to finalize its budget, the potential increase in sales tax is poised to have a broad impact on daily living expenses, particularly affecting the prices of sugar, ghee, tea, and makeup products.

Credit: Independent News Pakistan