The federal government has proposed to increase the sales tax rate on imported liquefied petroleum gas (LPG) from 10 percent to 18 percent in the federal budget 2024-25.
According to sources, the new tax rate of 18 percent is estimated to have a revenue impact of Rs. 21 billion.
The proposal is up for consideration today despite local vendors’ warning that such a move could increase LPG rates by Rs. 164 per cylinder.
Meanwhile, the government has proposed a 5 percent sales tax on all petroleum products.
The FY25 budget is expected to impose substantial taxes to help the government earn more revenue and potentially unlock a new bailout program from the International Monetary Fund.
For live updates on everything about the Federal Budget, visit this link.
