Prices of imported products in Pakistan rise

In order to encourage local industries, the Pakistani government decided this year to apply a 5% sales tax rate to local products and increase the tax rate on imported products to 17%. This move has led to an increase in the prices of many imported products, including leather goods, footwear, and clothing. Industry insiders believe that Pakistan is the only country in the world that applies different sales tax rates based on origin, which will hinder the introduction of international brands and even promote the increase of smuggling, under-invoicing, false customs declarations and other illegal activities.