The federal government is preparing to increase the Federal Excise Duty (FED) on a range of imported goods in the upcoming Budget for 2025-26.
According to sources within the Ministry of Finance, the move comes as part of ongoing discussions with the International Monetary Fund (IMF), which has yet to approve any proposals offering relief to the salaried class or the real estate sector.
Read More: https://theneutral.pk/government-set-to-increase-withholding-tax-on-cash-withdrawals-for-non-filers/
The IMF has reportedly demanded detailed alternative revenue plans to balance any relief measures. However, the Federal Board of Revenue (FBR) has so far failed to present satisfactory options to the IMF.
In response, the government intends to raise FED rates on imported items such as furniture, construction materials, and crockery. Additionally, efforts are underway to remove various tax exemptions in the next fiscal year’s budget.
For the first time, FED will also be levied on imported beef from Japan, particularly the premium Wagyu variety. Sources noted that a 330-gram portion of Japanese Wagyu beef currently sells for around Rs. 28,000 in Pakistan, emphasizing its status as a luxury import.
This strategy aligns with the government’s aim to increase revenue while discouraging the import of non-essential, high-end items.
