Prices of kitchen items, medicine and other to increase one per cent from Friday

KARACHI: After increasing one per cent Customs Duty of above 1400 products, the prices of medicine, tea, green tea, rice and other kitchen item would be increased from tomorrow (Friday) while land developers and builders will have to pay Rs 33 per square-feet to the Federal Board of Revenue (FBR) on their properties from July 1, 2016.

Meanwhile, the federal government has also introduced a new mechanism for determine the value of the properties throughout the country and directed the State Bank of Pakistan (SBP) to appoint their valuers in all the provinces.

Through this mechanism, the SBP valuers will set the value of the properties before its sell or purchase so that the FBR could fix an amount of property tax.

Earlier, the provincial governments were allowed to set the prices of properties in their provinces and this mechanism was not giving desire result to the government in the head of property tax. The government has also empowered the FBR to issue notices to the non-filers and collect the record of the companies up to 10-year.

The government through the Finance Bill 2016 increased the customs duty from 10 per cent to 11 per cent on the import of 900 products meanwhile the customs duty will be increased from 15 per cent to 16 per cent on 508 different imported products.

After this decision, the prices of medicine like cough syrup, paracetamol, Herbal medicine, Homeopathic medicines, basmati rice, broken rice, seeds and other raw material would be increased. However the prices of imported Potatos, Onion, tea leaves, green tea and other kitchen items would increase from Friday.

Through this finance act, the government has introduced a optional scheme for the traders under which the traders who were paying 17 per cent General Sales Tax can submit their input tax claim, while those who are non-filers would have to pay 2 per cent on their total turnover.

Meanwhile, the government have also increase the without tax on Prize-Bonds and other prizes up to 20 per cent for the non-filers while the filers would have to pay according to law.

The finance bills also increased the withhold tax on commercial Gas consumers to 5 per cent while the rate of withholding tax would be 12 per cent on commercial power consumers.

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