Finance Supplementary Bill 2023 approved by Federal Cabinet

Federal Cabinet approved the Finance Supplementary Bill 2023 providing for a one percent increase in General Sales Tax and additional taxes on luxury items as part of the reforms related to the International Monetary Fund’s Ninth Review.

According to the media reports, the Federal Cabinet met in Islamabad on Wednesday with Prime Minister Shehbaz Sharif in the chair and they approved the Finance Supplementary Bill 2023. He gave the directives not to tax any items of daily use which could affect the poor or middle class.

During the briefing given to PM Shehbaz Sharif, it was informed that under the reforms, the luxury items would be taxed. PM said the government was making all out efforts to put the minimum possible burden on the poor people.

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The supplementary finance bill would now be tabled before the parliament today as the president has already summoned the sessions of the National Assembly and Senate. The Premier said that an austerity policy would be adopted at the government level which would soon be formally announced. He said all of the cabinet members and the government officers would be bound to adhere to the austerity package as it was imperative to steer the country out of economic challenges.

Shehbaz Sharif further stated that the 220 million of Pakistan were bearing the brunt of the incompetence and negligence of the previous government. He said that the previous government betrayed the people through its tall claims of simplicity and austerity.

The cabinet also approved the renaming of the Turkiye Earthquake Victims Fund as Turkiye and Syria Earthquake Victims Fund. PM expressed condolences over the destruction caused by the unprecedented earthquake in Turkiye and Syria. 

Federal Cabinet endorsed the Economic Coordination Committee’s decisions it had taken in its meetings held on February 10 and 13, 2023.