In the soon-to-be-presented 2024-2025 fiscal budget, several everyday items might see price reductions.
Finance Minister Abul Hassan Mahmood Ali will present the budget today (6 June) in the National Parliament, which includes proposed tax cuts on various products and services.
According to reliable sources at the Ministry of Finance and the National Board of Revenue (NBR), several everyday products such as powdered milk, laptops, and domestically produced motorcycles are expected to become more affordable.
Here’s a breakdown:
Powdered milk
The 20% supplementary duty on imported packaged powdered milk is being removed, which will likely lead to lower market prices.
Additionally, the import duty on chocolate is being reduced by 25%, potentially lowering chocolate prices.
Laptops
VAT on imported laptops is being eliminated, reducing the overall duty from 31% to 20.50%. This is expected to significantly lower laptop prices.
Carpets
Import duty on polypropylene yarn, essential for carpet making, is being cut from 10% to 5%.
This reduction should lower the cost of domestically produced carpets.
Aviation
VAT on the import of engines and propellers for the aviation sector is being reduced, which will help lower aircraft maintenance costs.
Motorcycle
The import duty on CKD (completely knocked down) engine parts for domestically produced motorcycles is being reduced.
This move is expected to make locally manufactured motorcycles cheaper.
Iron products
The duty on manganese, used in producing rods, bars, and angles, is being decreased from 10% to 5%, likely reducing the prices of iron-based products.
Electrical switches and sockets
Import duty on raw materials for producing domestic switches, sockets, and holders is being reduced, which should bring down the prices of these household items.
Electric motors
Concessions on importing parts for electric motors are expected to lower their prices.
Medical equipment
The duty on raw materials for dialysis filters is being cut, potentially reducing dialysis costs.
Additionally, the import duty on circuits is dropping by 9%, further lowering medical expenses.
Prices of spinal syringes and dengue test kits are also expected to fall due to reduced duties.
