The government has raised taxes and duties on hundreds of products and services, such as internet services, soft drinks, cigarettes, and hotel-restaurant services.

On Thursday evening, two ordinances were issued in this regard. The two ordinances are the Excise and Salt (Amendment) Ordinance 2025 and the Value Added Tax and Supplementary Duty (Amendment) Ordinance 2025. The National Board of Revenue’s (NBR) VAT Department issued guidelines in this area following the publication of these two ordinances. Consequently, the modifications made to this ordinance are now immediately operative.

The National Board of Revenue has planned to increase and rationalize VAT on some goods and services in compliance with the conditions of the International Monetary Fund (IMF). The report given by the NBR was presented in the advisory meeting, which was approved.

This may further increase the daily living costs of the common man. For example, the increase in supplementary duty on mobile phone services will increase the cost of talking and using the internet. Again, the price of clothing may also increase. The cost of restaurant food will also increase.

In addition, the list of price increases will include sweets, medicines, LP gas, fruit juice, drinks, biscuits, spectacle frames, cigarettes and various other products.

Earlier, on January 1, the NBR’s proposal to increase VAT and supplementary duty was passed in the meeting of the Advisory Council of the current interim government. After the approval of the Chief Advisor and the President, subject to the opinion of the Law Ministry, it has been issued in the form of an ordinance. Since there is no National Parliament, the government has taken this decision to increase customs duties through an ordinance.

Where the cost will increase

For so long, supplementary duty was imposed at the rate of 20 percent on the use of mobile phone SIM or RIM cards. This has now been increased to 23 percent. As a result, the cost of talking on mobile phones and using the internet will also increase. VAT on ready-made clothing outlet bills of branded shops and malls has been increased from 7.5 percent to 15 percent. In addition, VAT on all types of restaurants has been increased from 5 percent to 15 percent.

The list of customs and tax increases also includes tissues, cigarettes, nuts, mangoes, oranges, grapes, apples and pears, fruit juices, any type of fresh fruits, paints, detergents, dyes, liquor bills, potato flakes, plastic and metal frames of glasses, reading glasses, sunglasses, electrical transformers and the oil used in them, electricity poles, CR coils, GI wires, etc. Apart from this, travel tax has also been increased.