Islamabad: The federal government has decided to increase the General Sales Tax (GST) on stationery products from 10 percent to 18 percent under the upcoming Finance Bill 2026, according to official sources.
The proposal has reportedly been finalized and approved by the International Monetary Fund (IMF). If enacted, the revised tax rate will come into effect on July 1, 2026.
The move will increase the GST on a wide range of everyday school and office supplies by 8 percentage points, raising the total tax rate to 18 percent.
Officials said the measure is part of the government’s broader efforts to enhance revenue collection and help the Federal Board of Revenue (FBR) meet its tax targets for the next fiscal year.
The proposed tax increase comes at a time when inflation continues to put pressure on household budgets across the country. As a result, students, parents, educational institutions, and businesses are expected to face higher costs for essential stationery products.
According to sources, the higher GST is likely to increase retail prices unless lower-cost alternatives become available in the market.
The proposal is expected to be included in the federal budget for 2026-27, which will outline the government’s fiscal and taxation strategy for the coming year.
