Pakistan budget introduces GST and excise changes

Pakistan is introducing a number of minor changes to the Goods & Services Tax (GST) and Excise Duty regimes from July 2014. These were announced in the recent 2014/15 budget. Changes include:

• A simplified GST regime is to be 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%
• FED is withdrawn where GST is now liable.
• A new Luxury Tax is to be introduced at 5% on certain goods, including expensive watches