TDS Desk

The government has increased the value added tax (VAT) and supplementary duty (SD) on over 100 products and services in the second half of FY25, with concerns mounting that the move will further strain household budgets, exacerbate inflationary pressures, and stifle economic growth.

Two ordinances – Value Added Tax and Supplementary Duty (Amendment) Ordinance 2025 and Excise and Salt (Amendment) Ordinance 2025 – were issued in these regards on Thursday night.

The hikes came into effect immediately.

With the issuance, costs will go up on mobile phone and internet usage, clothing items, eating at restaurants, sweets, LP gas, biscuits and cakes, spectacles, and sunglasses, among others.