ST on luxury items raised to 25%

The federal cabinet has allowed an increase in the sales tax (ST) on luxury items to 25%, meeting yet another condition of the International Monetary Fund (IMF) for the revival of its loan programme for the country.

The cabinet gave approval through circulation of the summary. The new rate would be applied from March 1, it was learnt on Tuesday.

The items on which the sales tax had been raised, included imported mobile phones, chocolate juices, carpets, cosmetics, tissue papers, dog and cat food, fish, footwear, fruits and dry fruits, furniture, ice cream, jam, jelly, leather jackets, shampoo, sunglasses, ketchup, travelling bags and suitcases, weapons, pasta, musical instruments, frozen meat, doors and window frames, decoration articles, home appliances, sanitary and bathroom equipment, crockery and corn flakes etc.