As budget 2016-17 is on its way, the common man is waiting apprehensively, whether the yearly ritual would bring bane or boon.
As per local media reports, the government is expected to raise taxes on cigarettes, cold drinks, mineral water, mobile phones, cosmetics, garments, tea, coffee, sugar, cement and mobile phones, which would ultimately increase the price of these commodities.
As per reports, the government is likely to impose 17 percent GST on mineral water, a new federal excise duty regime on cigarettes, Rs 1/kg FED on cement, 8 per cent sales tax on sugar, 10 percent sales tax on poultry ingredients.
The dairy sector will be brought under the GST regime, as prices of packaged milk are expected to increase by Rs 6 per kg. The duties and taxes on cosmetic items and other imported goods are likely to be further enhanced.
Whereas, the FED on cigarettes is likely to be increased from Rs 3,030 per thousand sticks to Rs 4,500 for high end brands and for low price brands from Rs 1,320 to Rs 2,000 per thousand sticks. Similarly, tax on mobile phones is expected to be enhanced from Rs 500 to Rs 1,000 for basic phone and Rs 2,000 for smart phone.
Reports further informed, the government has also decided to impose 1 percent withholding tax on life insurance and 4 percent for general insurance. Whereas the tax rate on dividend income is likely to increase to 20 percent for non-filers of income tax returns against the existing rates of 17.5pc.
The cabinet has also approved 10pc sales tax on meat, poultry. The poultry and animal feed to be charged 5pc sales tax. A 17pc tax is approved on soya bean meal, sunflower seed.