FBR Imposes Heavy Taxes on Household Items and Foodstuff

(Digital Itla) In the federal budget 2026-27, the Federal Board of Revenue (FBR) has proposed large-scale new measures to increase tax revenues. According to sources, a tax target of PKR 15,264 billion has been set for the upcoming fiscal year, while a total of PKR 650 billion in additional tax measures will be part of the budget, including approximately PKR 150 billion in brand-new tax initiatives. Under the new budget, it is proposed to levy sales tax on hundreds of items sold in retail packaging, with key items including milk, infant formula milk, and other dairy products. In addition, an 18% General Sales Tax (GST) has been proposed on ghee, edible oil, sweets, pasta, and various spices. Retail-packed agricultural medicines, disinfectant products, plastic household items, kitchenware, and storage items will be subject to tax, making bags, suitcases, handbags, and other travel luggage more expensive. All types of footwear have been brought under the sales tax net. Taxes have also been levied on bathroom fittings, sanitary ware, and restroom accessories, and sales tax will be collected on crockery and household utility items. A tax has also been imposed on the retail sale of vehicles and automobile accessories; a 30% tax has been levied on luxury SUVs valued between 20 to 30 million PKR, while a 40% tax is proposed on vehicles costing more than 30 million PKR. Purchasing from unregistered suppliers will incur a 5% tax, and the tax rate on distributors has been increased from 0.25% to 0.50%. Commercial importers who sell imported raw materials will face a 3% tax.