Which items will be more expensive after budget 2023

The federal government has proposed an increase in taxes on imported luxury items such as cell phones, cars, and other goods in the FY2023-24 budget.

The sources indicated that the government is considering raising the duty on mobile phones valued at more than $100. Additionally, imported energy-saving bulbs, chandeliers, and LEDs are expected to become more expensive in the upcoming budget.

In an effort to generate revenue, the government aims to implement a 25% sales tax on various luxury items, with the expectation of collecting Rs45 to 55 billion. This tax will be applicable to imported branded shoes, purses, sunglasses, perfumes, headphones, iPods, speakers, doors, windows, bath fittings, tiles, and sanitary products.

Sources also mentioned that the sales tax on imported electronics, makeup goods, hair colors and dyes, and pet food will remain at 25%.

Furthermore, it is reported that the federal government plans to allocate Rs102.86 billion for power sector projects in the budget for the fiscal year 2023-24. the federal government is expected to allocate Rs102.86 billion for power sector projects in the upcoming budget for the fiscal year 2023-24.

The proposed budget recommends allocating Rs102.86 billion for power sector projects in the new fiscal year. As part of these allocations, it is suggested to launch 32 new schemes in the power sector.

Among the projects included in the budget are the construction of a 1,200 MW solar power plant near Haveli Bahadur Shah, an allocation of Rs14.1 billion for the CASA 1000 project, Rs12.5 billion for power transmission from the Suki Kinari hydropower project, and Rs1 billion each for improving power distribution in Multan Electric Power Company (MEPCO) and Hyderabad Electric Supply Company (HESCO).

Additionally, it is recommended to allocate Rs4.41 billion for power transmission from the Dasu hydropower project, Rs3 billion for the advance metering infrastructure in Islamabad Electric Supply Company (IESCO), and Rs2.32 billion for the Supervisory Control & Data Acquisition (SCADA) system in the National Power Construction Corporation (NPCC).

In another development, Finance Minister Senator Ishaq Dar reassured that despite economic challenges, the government is committed to providing a business and investment-friendly environment in the country through the upcoming budget for the fiscal year 2023-24. The finance minister made this assurance during a meeting with a delegation from the Pakistan Stock Exchange (PSX), led by Farrukh Hussain Khan, MD/CEO PSX.

During the meeting, the PSX delegation appreciated the finance minister's initiative to involve all stakeholders in the budget preparation process. They also highlighted various challenges faced by the capital markets and investors and presented recommendations to be considered in the upcoming federal budget for 2023-24.

Finance Minister Ishaq Dar acknowledged and appreciated the role of the PSX in providing a reliable, orderly, liquid, and efficient digitized marketplace for investors in Pakistan.

These developments reflect the government's efforts to prioritize the power sector and create a favorable economic environment to attract investments and boost the country's economy.