Several items, including meat, mobile phones, packaged milk, and medicines, are expected to become expensive after the National Assembly passed the amended Finance Bill on Friday.

The approval of the tax-heavy bill would lead to a significant rise in prices across various sectors, directly impacting the daily lives of citizens.

The prices of chicken, beef, and goat meat would also go up, while mobile phone prices are also expected to see a hike. Furthermore, the cost of purchasing over-the-counter remedies for common ailments like cold and flu will also become more expensive.

A 10% sales tax will be levied on animal feed, poultry feed, livestock feed, and food made from sunflower seeds and canola seeds. Imported mobile phones under $500, as well as locally manufactured mobile phones, will face an 18% sales tax.

It merits here to mention that the government has revised the petroleum development from Rs80 to Rs70, which is still Rs10 higher than the current Rs60/ltr rate and five per cent federal excise duty on engine oil. The impact of petrol prices is directly seen in the basic commodities rates.

Moreover, the government has not made changes to taxes imposed on the salaried class. According to business journalist Shahbaz Rana, a person earning Rs10 million or more (that becomes Rs833,000), if he is a salaried person, would have to pay a 10% surcharge on the 35% tax.

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“I hope and pray that people should challenge this in the courts as there is no logic of surcharge on tax,” he said while appearing on Geo News show Naya Pakistan. “So the effective salaried class rate will be 39% and the non-salaried person will by 50% tax.”

He described the surcharge as a penalty.

The new regulations also include harsh penalties for tax evaders. Fines up to 100% of the evaded tax amount or imprisonment of up to 10 years will be imposed on those found guilty of tax evasion. The punishment for tax evasion of Rs500 million or more will be five years in prison while evasion of Rs1 billion or more will result in a 10-year jail sentence.