The National Board of Revenue (NBR) is anticipated to amend the Value Added Tax (VAT) and Supplementary Duty (SD) on mobile phone talk time, internet, medicine, and restaurant services, officials disclosed today.
This move comes in response to widespread public discontent following the government's decision to raise indirect taxes on nearly 100 products and services.
The increase, aimed at bolstering domestic revenue and meeting conditions imposed by international lenders, sparked significant backlash.
According to the latest deliberations, the NBR may revert the SD on mobile phone usage to the former rate of 20% from the current 23%, while the SD on broadband internet is likely to be reduced to 5% from 10%, effective retroactively from 9 January.
Similarly, the trade VAT on medicine is expected to be reinstated to the previous rate of 2.4%, down from 3%.
The VAT on restaurant services is also anticipated to return to the earlier 5% from the current 15%, said a member responsible for VAT policy at the NBR.
However, only 3 to 5-star hotels will continue to attract the 15% VAT rate, as they benefit from the input tax credit scheme.
