Which Items Will Get Expensive in Expected Mini-Budget 2025?

The government is reportedly preparing a mini-budget that could significantly increase the cost of several everyday items as part of efforts to raise funds for flood recovery.

According to a report by The Express Tribune, new levies are being considered on imported goods, vehicles, cigarettes, and electronic products. This move aims to address the government’s growing revenue deficit, worsened by the recent flooding.

The proposed mini-budget plans to impose a federal levy on luxury items and more than 1,100 imported products. If approved by Prime Minister Shehbaz Sharif, these levies could generate crucial funds for flood rehabilitation, even as provincial authorities continue to manage most relief operations locally.

Finance Minister Muhammad Aurangzeb led a meeting on Tuesday to discuss potential measures under the forthcoming Flood Levy Bill. While specific details, including the exact list of items and rates, are still being finalized, the government hopes to raise at least Rs 50 billion through these initiatives.

Items expected to face increased costs include:

• Cigarettes: A flat Rs 50 levy may be added to each cigarette packet regardless of brand or price. This measure could impact smokers across all income levels and has raised concerns about disproportionate effects on lower-income groups.

• Electronics: A 5% levy is under consideration for electronic goods exceeding a certain price threshold, which is yet to be finalized. This could result in higher prices for smartphones, laptops, and other consumer electronics.

• Vehicles: Cars with engine capacities of 1,800cc and above could be subjected to increased taxes. With tax components already accounting for up to 61% of vehicle prices, this hike would further raise costs for buyers, especially in the higher-end market.

• Imported Goods: More than 1,100 imported items may face new levies. This follows a previous reduction in regulatory duties in June under an IMF-backed trade liberalization plan, which the government might now partially reverse or offset with these levies to address the revenue shortfall.

The government is expected to finalize proposals soon as it seeks to balance economic pressures with the urgent need to fund flood relief and rehabilitation.

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