The National Assembly Standing Committee on Finance has approved a major change in the sales tax system. It has added 116 more items to the Third Schedule of the Sales Tax Act. This step is expected to bring in extra Rs50 billion in revenue for the Federal Board of Revenue (FBR).
The new items include many everyday packaged retail goods. These are vegetable oil, milk, pasta, noodles, sauces, beverages, jellies, school bags, footwear, crockery, tiles, household utensils, and personal care products. Sales tax will now be charged on the printed retail price of these goods. This helps stop under-reporting and ensures fair tax collection.
Officials say this move is part of the government’s plan to broaden the tax net and increase revenue without raising the main tax rate too much. It is included in the Finance Bill 2026-27. The committee, chaired by MNA Naveed Qamar, reviewed these proposals carefully.
Prices of some affected products may go up a little in the beginning. However, they are expected to become stable later. This change will mainly hit packaged and branded items sold in shops.
The government hopes this will improve tax collection and help reduce the budget deficit. Many families use these daily items, so people will watch closely how prices change in the coming weeks. Experts say such steps are necessary for a stronger economy, even if they bring short-term pressure on consumers.
