The federal government is considering new local taxes in Islamabad to help cover the running costs of the Jinnah Medical Complex and Research Centre, planned for Sector H-16.

The Capital Development Authority (CDA) will build the project, which belongs to the Ministry of Health. According to a report in Dawn, Prime Minister Shehbaz Sharif has directed the attorney general, the law minister, and the CDA chairman to prepare draft legislation for these taxes.

An official said the new taxes would likely target junk food, cigarettes, and other unhealthy items or activities, but legislation must first be passed before implementation.

Read more: Tax Settlement: FBR, SRB Resolve Sales Tax Dispute

The medical complex, costing Rs. 212 billion, has already been approved. It will be built in two phases: first a hospital, and later a medical college with related facilities. CDA has set aside more than 600 kanals of land in H-16 for the project.

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