The government has made this announcement through the budget for the upcoming fiscal year 2023-24 which was presented on May 29 before the Federal Parliament.
"Two percent luxury tax shall be imposed on luxury goods and services from the upcoming fiscal year," the government announced in the budget, and it has now come into effect from Monday, marking the beginning of the fiscal year 2023-24.
The four and five-star hotels and resorts charge their clients an additional two percent while providing services from mid-July.
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 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 a responsible person will be charged a fine of 2.5 percent annually until the submission of the details. (RSS)
