Expected Sales Tax Hike Threatens Price Surge for Sugar, Ghee, Tea Leaves, and Makeup Products
If the sales tax on sugar rises from 18 to 19 percent, consumers could face an approximate increase of Rs. 5 per kilogram.
ISLAMABAD: In anticipation of the upcoming federal budget for the next financial year, concerns arise over potential price hikes for essential consumer goods. The federal cabinet, chaired by Prime Minister Shahbaz Sharif, convened to deliberate on various aspects of the forthcoming budget, including decisions from the Economic Coordination Committee (ECC).
Sources indicate that the proposed increase in sales tax rates may significantly impact the prices of several everyday items. Notably, sugar, ghee, tea leaves, noodles, jam jellies, and makeup items are expected to bear the brunt of this fiscal adjustment.
If the sales tax on sugar rises from 18 to 19 percent, consumers could face an approximate increase of Rs. 5 per kilogram. Similarly, the price of ghee is projected to surge by Rs. 5 to 7, while soap and shampoo may witness hikes ranging from Rs. 2 to 5 and Rs. 15 to 20, respectively.
As the federal budget announcement looms, consumers brace themselves for potential financial implications on their household budgets, particularly concerning these staple commodities and personal care products.
Power and Gas Surge: Citizens Face Historic Price Pressures in 2024
ISLAMABAD: In a financial year marked by unprecedented economic challenges, the nation witnessed a staggering surge in petroleum prices and utility tariffs, setting new records and amplifying the burden on citizens.
Under the conditions stipulated by the International Monetary Fund (IMF), a historic levy of 60 rupees was imposed on both petrol and diesel for the first time in the country’s history. This move, coupled with other factors, propelled petrol and diesel prices to their highest levels ever, escalating the strain on consumers’ wallets.
Despite sporadic decreases, the price of petrol skyrocketed by 6 rupees 36 paisa per liter, while diesel surged by 9 rupees 72 paisa per liter throughout the fiscal year. Concurrently, electricity consumers grappled with a staggering burden of over 1700 billion rupees in electricity tariff and adjustment charges, exacerbating financial pressures on households.
Read More: Govt Approves 150,000 Metric Tons sugar export to Regulate Market
The relentless upward trajectory continued as gas prices experienced two significant hikes during the year. In November 2023, gas prices surged by a staggering 172% for domestic consumers, followed by another increase of 67% in February 2024. Additionally, fixed charges for non-protected customers soared from Rs 460 to Rs 2000 thousand, further straining household budgets.
From the record-breaking petrol and diesel prices to the relentless surge in utility tariffs, the financial year 2023-24 has posed unprecedented challenges for citizens, highlighting the urgent need for sustainable economic policies to alleviate the burden on the populace.
