The federal government has chosen to raise the general sales tax (GST) on stationery including common school and office supplies from 10 percent to 18 percent as part of the upcoming Finance Bill 2026 under the new budget.
This proposal has been finalised and approved by the International Monetary Fund (IMF).
The new tax rate will be effective from July 1, 2026. Stationery items, currently taxed at 10 percent, will experience an increase of 8 percentage points, bringing the total sales tax to 18 percent.
With inflation already making everything more costly nationwide, the government has opted to implement a new tax system on stationery products to boost tax revenue for the next fiscal year.
This could provide the Federal Board of Revenue (FBR) with a larger source to meet its tax goals starting in July.
According to sources, this change will directly affect students, parents, and office consumers as the prices of essential supplies rise throughout the country.
All stationery items will become pricier due to the increased GST under the new budget, sources noted.
IT ministry proposes reduction in mobile taxes for budget 2026-2027
Earlier, the Ministry of Information Technology (IT) proposed to reduce advance tax and general sales tax on mobile phone users for the budget 2026-27.
The purpose of the proposal is to support the telecom sector and give relief to the public. The proposal has been sent to the Ministry of Finance.
Officials from the IT Ministry said that the government should reduce the current 15 per cent advance tax and 19.5 per cent GST in a phased manner.
They said that this will help make mobile and internet services more affordable for common people.
Read more: Budget 2026: IT ministry proposes reduction in mobile taxes, internet taxes
