ISLAMABAD: Pakistan is likely to keep heavy taxation on food and essential commodities in the upcoming budget, while existing duties and taxes on basic consumer items continue to remain in place, according to official documents.
The documents show that a 20 percent customs duty and an additional 4 percent duty are currently imposed on white crystalline sugar.
A 18 percent sales tax is also applied on several essential items, including vegetable ghee, cooking oil, tea, sugar, powdered milk, prepared food products, electricity and gas. A 1 percent sales tax is also levied on various medicines.
Chicken is subject to a 20 percent customs duty along with an additional 4 percent customs duty. Eggs face customs duties ranging from 3 percent to 16 percent, in addition to regulatory duties.
Potatoes are taxed at a 20 percent regulatory duty, while tomatoes and onions carry a 5 percent customs duty each.
Wheat and rice are both subject to a 10 percent customs duty, while wheat flour carries a 5 percent customs duty.
The documents further show that raw soybean oil is taxed at Rs10,500 per metric ton in customs duty, along with an additional 2 percent customs duty. Vegetable oil carries Rs10,800 per metric ton in customs duty and a 10 percent regulatory duty.
Raw cooking oil is subject to Rs8,000 per metric ton customs duty and an additional 2 percent duty.
Officials said the existing taxation structure on essential food items remains largely unchanged, indicating continued reliance on indirect taxes on daily-use commodities.
