ISLAMABAD: The International Monetary Fund (IMF) has called for the withdrawal of the reduced sales tax concession on stationery items, with the government considering increasing the sales tax rate to 18 percent under the Finance Bill 2026.
According to sources, proposals are under review to raise the sales tax on stationery products from the current reduced rate to 18 percent as part of broader tax reforms being considered for the upcoming fiscal year.
If approved, the increase is expected to make educational and office supplies, including notebooks, registers, pens and pencils, more expensive for consumers.
Sources said the proposed tax rate would take effect from July 1, 2026, and the IMF has approved the plan to impose an 18 percent sales tax on stationery items.
The increase in sales tax is likely to raise educational and office-related expenses, adding to the financial burden on households and businesses.
The government is also considering limiting various tax exemptions in the 2026-27 budget, with the withdrawal of concessions for the stationery sector expected to contribute to higher retail prices.
According to sources, the proposed change would significantly increase the tax burden on stationery products, with an 18 percent sales tax likely to be implemented from the start of the next fiscal year.
