VAT Adjustments Planned In Upcoming Budget: Economic Advisor

Economic Advisor Dr Salehuddin Ahmed has announced that the recently increased VAT and taxes on various goods and services will be revised in the upcoming budget.

Speaking on Tuesday (January 21) after a meeting of the Advisory Committee on Government Procurement at the Secretariat, he shared that the prices of several products remain stable, and the overall market impact of the VAT hike has been minimal.

He highlighted the government's efforts to bolster fertilizer stocks by increasing imports, aiming to prevent potential future shortages. Ahmed also addressed issues in the rice supply chain, attributing disruptions to manipulative practices by retail and wholesale traders, although rice prices currently remain stable.

Additionally, the Economic Advisor confirmed the temporary suspension of the special OMS (Open Market Sales) program, which offered low-cost goods via trucks to low-income populations. He explained that this measure was no longer necessary for certain items, such as vegetables, due to adequate supply.

However, he assured that the regular OMS program, which provides essential goods at subsidized rates through a card system, will continue uninterrupted.