ISLAMABAD – The standard rate of sales tax would remain unchanged at 18 percent from July 1, 2025.
This was announced by Finance Minister Aurangzeb while presenting the federal budget 2024-25 in the National Assembly on Wednesday.
Finance Minister Aurangzeb unveiled the Rs18,877 billion federal budget for the fiscal year 2024-25, setting a GDP growth target of 3.6 percent and projecting an inflation rate of 12 percent.
He also noted that the budget deficit to GDP is estimated at 6.9 percent, with a primary surplus projected at 1.0 percent of GDP.
The budget proposal of raising sales tax rate from 18 to 19 percent was discussed between the Federal Board of Revenue (FBR) and top government decision makers. The government has again rejected the proposal and the 18 percent sales tax would continue from next fiscal year (2024-25).
Prime Minister Shehbaz Sharif rejected this proposal of raising the standard rate of sales tax from 18 to 19 per cent.
