The federal government is considering a mini-budget to raise funds for flood rehabilitation, proposing additional taxes on cars, cigarettes, and electronic goods, along with a levy on imported items equivalent to the regulatory duty cuts made in June.
According to a report in Express Tribune, the plan focuses on luxury products typically consumed by wealthier segments as well as more than 1,100 imported goods.
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Revenue would be collected through a federal levy, with the government aiming to generate at least Rs. 50 billion.
The proposals were discussed on Tuesday in a meeting chaired by Finance Minister Muhammad Aurangzeb. If approved by the prime minister, the measures will be introduced through a Flood Levy Bill to offset a widening revenue shortfall, which has already reached Rs. 40 billion in July-August and is expected to cross Rs. 100 billion by month’s end due to flood-related disruptions.
Among the measures under consideration are a Rs. 50 levy on every cigarette pack, regardless of brand or price, a 5% levy on electronic goods priced above a certain threshold, additional duties on cars with engine capacities of 1,800cc and above.
Officials noted that unlike taxes, levies remain federal revenue and are not shared with provinces, helping compensate for the Federal Board of Revenue’s (FBR) collection gap. However, the legality of imposing such levies was debated during the meeting.
The Ministry of Finance and the FBR have so far declined to comment on the proposed flood levy.
