Pakistan's parliament gave the go-ahead Monday for the government to raise taxes on a raft of luxury imports and services in a bid to unlock the next tranche of an International Monetary Fund (IMF) loan, reports AFP.
Faced with critically low foreign exchange reserves, the country has already halted most imports -- apart from food and pharmaceuticals.
Years of financial mismanagement and political instability have pushed Pakistan's economy to the brink of collapse, exacerbated by a global energy crisis and devastating floods that submerged a third of the country in 2022.However, with an election due by the end of the year, the government is reluctant to be too harsh in case it is punished at the polls.
Pakistan parliament approved on Monday a supplementary finance bill that increases sales tax from 17 to 25 per cent on imports ranging from cars and household appliances to chocolates and cosmetics.
People will also have to pay more for business-class air travel, wedding halls, mobile phones, and sunglasses.
Bd-pratidin English/Golam Rosul
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