The Federal Board of Revenue (FBR) has nearly finalized the Finance Bill for 2025-26 with approximately Rs. 200 billion in new taxes, sources told ProPakistani.
Key proposals include the new 18 percent sales tax on the import of solar panels and on e-commerce transactions.
FBR has also completed a review of items under the Sixth Schedule (exemptions) and Eighth Schedule (reduced rates) of the Sales Tax Act, with a plan to withdraw several exemptions and concessionary rates.
In partial relief, some cancer-related medical equipment and lifesaving drugs are expected to be added to the tax exemption list.
FBR is also planning to broaden the sales tax net for services provided within the Islamabad Capital Territory, and introduce an 18 percent sales tax on goods manufactured in the ex-tribal areas.
Moreover, the Third Schedule of the Sales Tax Act, which mandates taxation based on printed retail prices, will be expanded to include more imported products like chocolates, coffee, and cereals.
In terms of excise duty, FBR is considering a 5 percent excise duty on ultra-processed food products. This may cover frozen foods, chips, carbonated drinks, instant noodles, ice cream, biscuits, frozen meat, sauces, ready-made meals, and sausages.
These measures are expected to be part of the fiscal year 2025-26 budget.
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welldone, please remove exemptions from life saving drugs as well as cancer related items.
As usual I stand corrected
We don’t have any supply chains anymore. Everything is created abroad and imported or assembled here causing prices to rise . And govt imposes taxes and then claims inflation is down while economy is going down the drain.
Only saving grace was solar as it allowed people to produce their own electricity in this terrible summer heat THAT WE CREATED.
Why not tax us individually for breathing air also.
Support your proposal. We deserve it.
Well done. Nation has lot of wealth. Fix them to full extent.