Everything to Get Expensive With New GST Approval

People in Pakistan are facing more inflation as the prices of everything is set to rise with approval of the 18% General Sales Tax (GST). This means the price of packaged milk and other food items along with almost all other daily use items like soaps is set to rise from July 1, 2024.

The national assembly (NA) passed the Federal Budget for 2024-25. This budget includes an 18% GST on packaged milk, herbal and homeopathic medicines, and various food items. Due to the new GST, the prices of branded flour, packaged rice, and lentils will also increase.

The new GST will also effect items like soaps, shampoos, detergents and almost all other daily use items at home since the government has approved 18% GST across the board.

Even though the Senate Standing Committee on Finance rejected this proposal, the government decided to go ahead with it. The sales tax will also affect charitable and welfare hospitals.

This move is expected to increase the cost of living for many Pakistanis, especially low-income families who rely on these essential items. Despite requests from representatives of the dairy industry and other stakeholders to reconsider the general sales tax, the government approved the new taxes.

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