Sales tax on petroleum products likely to increase by Rs 20 per liter

 According to the letter of intent sent by the government of Pakistan to the International Monetary Fund (IMF), the sales tax on petroleum products and the tax exemption of the agricultural sector are likely to end.

 Letter of Intent, 10.5% sales tax will be imposed on petroleum products from October, after which the price of petroleum products is likely to increase by Rs 20 per liter.

The Letter of Intent states that sales tax exemptions for the agricultural sector will be removed if the tax targets are reduced, while the IMF has been assured that sales tax exemptions on agricultural drugs, fertilizers and tractors will be removed. .

The Letter of Intent says that if the targets are not achieved in the first quarter of this financial year, steps will be taken from October.

It has been mentioned in the Letter of Intent that by removing the tax exemption on the agricultural sector, a revenue of 150 billion rupees will be available.

According to IMF's Letter of Intent, more additional taxes will be imposed on Tier 1 and Tier 2 cigarettes, and revenue of up to 60 billion rupees is likely to be collected by imposing taxes on sugary drinks.

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