Following are the proposed budgetary measures pertaining to Sales Tax and Federal Excise Duty (FED) for FY 2024-25: – Withdrawal of various exemptions/zero rating and reduced/fixed rates. – Mobile phones to be taxed at standard rate (other than mobile phones valuing exceeding US$ 500 which will remain chargeable to existing rate of 25%). – Enhancement in reduced rate of sales tax from 15% to 18% on supplies made by the POS retailers dealing in leather and textile products. – withholding regime for lead, coal, scrap of paper and plastic, silica etc. – Iron and steel scrap to be exempted from levy of sales tax. – A phased withdrawal of exemption granted to ex-FATA/PATA. – Board empowered to fix minimum price of the goods falling under Third Schedule. – Streamlining and strengthening the provisions related to tax fraud. – Changes in the legal provisions related to assessment and audit. – Zero-rating of petroleum products is being converted into exemption. – Rate of default surcharge is to be aligned with the SBP?s policy rate of KIBOR plus 3%. Federal Excise Duty The proposed budgetary measures pertaining to Federal Excise Duty (FED) for FY 2024-25 are: – Imposition of FED on acetate tow @ Rs. 44,000 is proposed. – Imposition of FED on nicotine pouches @ Rs. 1200 per kg. – Enhancement of FED on e-liquids is also proposed. – FED @ Rs. 15 per kg on supply of sugar to manufacturers. – The rate of FED on cement is being enhanced from Rs. 2 per kg to Rs. 3 per kg. – FED on commercial properties and first sale of residential properties @ 5%. – Rate of FED on filter rod to be enhanced from Rs.1500 per kg to Rs.80,000 per kg. – power to seal business premises of retailers selling illicit cigarettes. – Exemption from FED to diplomats and diplomatic mission. – Price threshold for local manufactured cigarettes increased from Rs. 9,000 to Rs.12,500.