Govt increases taxes without passing of budget

E-Paper | March 18, 2026

ISLAMABAD: The government on Thursday increased the General Sales Tax (GST) without the passing of the federal budget in the Parliament, DawnNews reported.

In this regard, the Federal Board of Revenue (FBR) has issued a notification.

The government has levied a 240% GST hike in five major export sectors with immediate effect.

The GST rate of textiles, leather, toys, garments, surgical instruments and carpets has risen from five per cent to 17%.

The increase in taxes is said to be due to a statutory regulatory order (SRO).

Earlier on Tuesday, the federal cabinet had approved the federal budget for the year 2014-15, with a total outlay of Rs3.945 trillion, and a Public Sector Development Programme allocated at Rs525billion.

Also read: Finance minister unveils Rs3.945tr budget for 2014-15

Last year, the Supreme Court had ruled that the government had no legal authority to levy and charge GST without approval by the National Assembly of related proposals made in the budget.

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Ali

Jun 05, 2014 05:21pm

its fine-people will just put lower prices in invoices

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Sheraz Ahmed Khan

Jun 05, 2014 05:23pm

It is called mini budget... well done Mr. Ishaq Dar you are following instructions of IMF very well

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AJamal

Jun 05, 2014 09:23pm

PML-N wants "import" from India and accordingly exports are discouraged.

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Omer Irfan Kayani

Jun 05, 2014 10:49pm

It will only pave way for destruction of export sector of Pakistan to usher in Indian economic hegemony that's why Modi was so emotional on meeting Nawaz Sharif.

Recommend 0

Jun 06, 2014 01:00am

Many tax measures in the budget become effective from the very next day the budget is announced with the assumption that parliament would approve the finance bill. There is nothing fishy about it. These finished items imported from other countries for local sale has been subject to regular GST. This step does not help mody , india or hurt exporters. Quality of news reports have really gone down these days. Reporters are more interested in projecting the negatives Many a times without proper understanding of the issue.

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independentthinker

Jun 06, 2014 01:00am

There is something definitely very wrong here! Shouldn't we be encouraging exports? By keeping the taxes low, we can be attracting more foreign buyers and Heaven knows we need more of our products to enter the foreign markets! What is wrong with our leaders?

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Fazal Karim

Jun 06, 2014 05:55am

Beside, budget, Ramzan and eids, major factor for inflation is frequent changes in petroleum products prices. Traders take advantage of this and raise prices of goods. The rise is not in proportion to the petroleum and electricity factor, it is much more than that which petty shopkeepers and public can not calculate. When prices of petroleum products are reduced the advantage is hardly passed on to consumers. Thus government facilitates traders to continuously increase prices through out the year. Government not even calculate and let public know proportionate rise in prices of essential items due to rise in petroleum prices with every announcement. It is therefore requested that prices of petroleum products be restricted to only two times in year.

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muhamad rizwan

Jun 06, 2014 08:51am

govt. should take steps to insure jobs for atleast graduate person

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