ISLAMABAD: The government on Thursday increased the General Sales Tax (GST) without the passing of the federal budget in the Parliament, DawnNews reported.
In this regard, the Federal Board of Revenue (FBR) has issued a notification.
The government has levied a 240% GST hike in five major export sectors with immediate effect.
The GST rate of textiles, leather, toys, garments, surgical instruments and carpets has risen from five per cent to 17%.
The increase in taxes is said to be due to a statutory regulatory order (SRO).
Earlier on Tuesday, the federal cabinet had approved the federal budget for the year 2014-15, with a total outlay of Rs3.945 trillion, and a Public Sector Development Programme allocated at Rs525billion.
Also read: Finance minister unveils Rs3.945tr budget for 2014-15
Last year, the Supreme Court had ruled that the government had no legal authority to levy and charge GST without approval by the National Assembly of related proposals made in the budget.