Pakistan approves Bill to roll out higher taxes, nears IMF bailout

Hikes general levy to 18% from 17%, raises tax on imports of luxury items such as mobile phones to 25% from 17%

Pakistan’s National Assembly on Tuesday unanimously passed a money bill aimed at raising tax revenues to fulfil the demands set by the International Mone­­tary Fund (IMF) for seeking a $1.1 billion loan facility to avoid an economic meltdown.

The Finance (Supplementary) Bill 2023 or ‘mini-budget’ was approved in the lower lower house of Parliament days after the IMF urged the cash-starved country to take strong measures to avoid getting into a “dangerous place” where its debt needs to be restructured.

The bill increases sales tax from 17 to 25 per cent on luxury items. The general sales tax has been raised from