Pakistan’s Ministry of Finance and Revenue has announced that it has increased the domestic sales tax rate from 17 percent to 18 percent with immediate effect to implement a condition set by the International Monetary Fund (IMF) for the revival of its delayed $6.5 billion program. The tax measures are aimed to decrease the country’s fiscal deficit.
As a result of the increase in the tax, which will have an impact on costs that are already high amid energy and raw material prices, local steel producers have already started to increase prices, according to sources. For instance, Pakistani long steel producer Agha Steel has announced that it has raised its rebar prices for the domestic market.