The Federal Board of Revenue has proposed bringing 21 additional categories of retail packaged products under the sales tax regime, potentially extending the system to hundreds of consumer goods, including packaged foods, beverages, cosmetics, insecticides, and household items.
The proposal was discussed on Thursday by the National Assembly’s Standing Committee on Finance during its review of the Finance Bill 2026.
Tax officials told lawmakers that locally manufactured products covered under the scheme would be required to carry printed retail prices at the manufacturing stage, helping curb tax evasion by businesses that charge full retail prices without paying the corresponding sales tax.
According to the FBR, the proposal would apply only to goods sold in retail packaging and would exempt importers from the additional 4 percent sales tax currently imposed on sales to unregistered persons.
Committee Chairman Naveed Qamar cautioned that agricultural sprays should not be unintentionally brought under the new mechanism.
The committee directed the FBR to submit detailed revenue estimates and an assessment of the proposal’s impact before a final decision is made.
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