Tax Rate on Imported LPG May Rise to 18%

The federal government has proposed to increase the sales tax rate on imported liquefied petroleum gas (LPG) from 10 percent to 18 percent in the federal budget 2024-25. According to sources, the new tax rate of 18 percent is estimated to have a revenue impact of Rs. 21 billion. The proposal is up for consideration today despite local vendors’ warning that such a move could increase LPG rates by Rs. 164 per cylinder. Meanwhile, the government has proposed a 5 percent sales tax on all petroleum products. The FY25 budget is expected to impose substantial taxes to help the government earn more revenue and potentially unlock a new bailout program from the International Monetary Fund. For live updates on everything about the Federal Budget, visit this link.