The government on Tuesday increased the general sales tax (GST) rate to 18% and drastically enhanced taxes on cigarettes with immediate effect to collect Rs115 billion out of the planned Rs170 billion mini-budget. The government is likely to drop another petrol bomb on the masses on Feb 16 after it already jacked up the prices by Rs35 per litre on Jan 29.
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According to sources, the ex-depot per litre price of petrol is calculated to go up by Rs32.07 (12 per cent), high speed diesel (HSD) might witness a rise of Rs32.84 per litre (12.5 per cent), kerosene oil is estimated to be hiked by Rs28.05 per litre and light diesel oil (LDO) might see a hike of Rs9.90 per litre.
The federal cabinet took the step to implement another condition set by the International Monetary Fund (IMF) for the revival of the derailed $6.5 billion programme after President Arif Alvi refused to promulgate an ordinance sent by the government.
But the global lender will accept only permanent tax measures, which the government will ensure by getting the nod of parliament.
Source: Express Tribune