Islamabad (Lord Media): The Federal Board of Revenue (FBR) has announced new taxes on food and household items under the federal budget for 2026-27. A tax target of 15,264 billion U.S. dollars has been set for the upcoming fiscal year, including an additional 650 billion U.S. dollars in taxes.
The budget proposes a sales tax on retail-packed items such as milk, baby formula, and other dairy products. Additionally, an 18 percent general sales tax is recommended on ghee, edible oils, sweets, pasta, and spices.
Agricultural medicines, disinfectant products, plastic household items, kitchenware, and storage items will also be taxed, while travel goods like bags, suitcases, and handbags are expected to become more expensive.
A tax has also been imposed on the retail sale of vehicles, with luxury SUVs priced between 20 million and 30 million U.S. dollars facing a 30 percent tax, and those over 30 million U.S. dollars facing a 40 percent tax. Purchases from unregistered suppliers will incur a 5 percent tax, and the tax rate on distributors has been increased from 0.25 percent to 0.50 percent.
Commercial importers selling raw materials will be subject to a 3 percent tax.
