The federal government is preparing to present its initial budget for the fiscal year 2024-25, with an expected allocation exceeding Rs18 trillion, tomorrow on June 12. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, will present the budget in the National Assembly.
According to reports, the government is likely to raise the sales tax rate in the budget. If approved, this would lead to higher prices for various essential items such as sugar, ghee, tea, soaps, shampoos, makeup, noodles, jam, jelly, and more.
Currently, the sales tax rate stands at 18 percent, and the government aims to increase it by 1 percent to 19 percent. This change would raise the price of sugar by Rs5 per kilogram. By increasing the sales tax, the government expects to collect additional billions of rupees from consumers, aiding the financially struggling country in securing another bailout package from the International Monetary Fund (IMF).
Projected Prices of Shampoos and Soaps from July 2024 The Budget 2024-25 will take effect from July 1, 2024. If the one percent increase in sales tax is approved, soap prices will rise by Rs2 to Rs5 per piece. Similarly, the price of shampoos would increase by Rs15 to Rs20 per bottle from July 2024 following the budget's implementation.
