The Federal Board of Revenue (FBR) has nearly completed the Finance Bill for the fiscal year 2025-26, with new taxation measures expected to raise nearly Rs 200 billion. The bill, which has been in the final stages of preparation, includes several proposals to increase sales tax and impose new Federal Excise Duties (FED).
According to a news report, the government plans to impose an 18% sales tax on the import of solar panels, alongside a similar tax on e-commerce transactions. These measures are part of the broader revenue generation strategy for the upcoming fiscal year. The FBR has also finalized the list of items that will be removed from the Sixth Schedule (Exemption Schedule) and the Eighth Schedule, which currently offer lower sales tax rates.
In addition, the government is considering increasing sales tax on a number of products that are currently subject to concessional rates, while some cancer-related medical equipment and lifesaving drugs will be included in the sales tax exemption schedule. The FBR is also working on expanding the scope of sales tax on services within the federal capital.
The government has decided to impose an 18% sales tax on goods manufactured in the former tribal areas and is planning to expand the Third Schedule of the Sales Tax Act to include items like imported chocolates, coffee, and cereals.
Furthermore, the FBR is contemplating the introduction of a 5% FED on ultra-processed foods, including frozen foods, chips, carbonated drinks, instant noodles, ice cream, biscuits, and ready-made meals, as part of an effort to increase revenue while targeting the consumption of such products.
