ISLAMABAD: The Federal Board of Revenue (FBR) has proposed a series of major tax measures aimed at increasing revenue in the upcoming Budget 2026-27.
According to sources, the tax collection target for the next fiscal year has been set at Rs15,264 billion, while around Rs650 billion in additional tax measures are expected to be included in the budget, including nearly Rs150 billion in new taxes.
Under the proposed plan, sales tax may be imposed on hundreds of retail-packed items, including milk, infant formula, and other dairy products.
Items such as ghee, cooking oil, sweets, pasta, and various spices are also proposed to be brought under an 18% General Sales Tax (GST) regime.
The proposals further include taxation on retail-packed agricultural inputs, pesticides, plastic household goods, kitchenware, storage items, bags, suitcases, and other travel goods.
Footwear of all types is also expected to come under the sales tax net, along with bathroom fittings, sanitary ware, and household accessories such as crockery.
In the automobile sector, retail sales of vehicles and auto parts are proposed to be taxed. Luxury SUVs priced between Rs20 million and Rs30 million may face a 30% tax, while vehicles above Rs30 million could be taxed at 40%.
Additionally, a 5% tax is proposed on purchases from unregistered suppliers, while the tax rate for distributors is suggested to increase from 0.25% to 0.50%. Commercial importers selling imported raw materials may also face a 3% tax under the new plan.
