Government to charge 2% additional tax on luxury goods

The government has decided to impose two percent luxury charge for services of high-end hotels and resorts, imported liquors and precious metals.

The government has made this announcement through the budget for the upcoming fiscal year 2023-24 that was presented Monday before the Federal Parliament.

"Two percent luxury tax shall be imposed for luxury goods and services," the government said in the budget.

The high-end hotels and resorts shall charge their clients two percent additionally while providing services from coming mid-July. The new fiscal year commences on July 17.

The tax is applied on ornaments made up of precious metals and stones such as gold, diamond, pearls and gems worth over Rs 1 million. The tax is levied on imported alcoholic products at the customs point during the times of transportation.

In case of the non-payment of the luxury tax, it will be recovered along with a 15 percent interest rate annually.

Likewise, if the statement related to luxury tax is not submitted, such responsible person will be charged a fine of 2.5 percent annually until the submission of the details.

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