With the Budget 2014/15 Pakistan is introducing a number of minor changes to the Goods & Services Tax (GST) and Excise Duty regimes from July 2014. Following changes will take place:

  • Simplified GST regime introduced for the retail sector;
  • Federal Excise Duty (FED) on goods manufactured or imported into Pakistan will be cut from 19.5% to 18.5%;
  • A new Luxury Tax is to be introduced at 5% on certain goods, including expensive watches.