The federal government is set to increase the General Sales Tax (GST) on stationery items from 10 percent to 18 percent in the upcoming Finance Bill 2026-27, according to official sources.
Sources revealed that the proposal has been finalized and cleared during consultations with the International Monetary Fund (IMF). If approved, the revised GST rate will come into effect from July 1, 2026.
The planned measure will raise the tax burden on a wide range of school and office supplies, increasing the GST rate by eight percentage points from the current 10 percent to 18 percent.
The move is part of the government’s broader strategy to boost tax revenues in the next fiscal year and support efforts to meet revenue collection targets. The increase is expected to provide additional resources to the Federal Board of Revenue (FBR) as it seeks higher tax receipts under the upcoming budget.
However, the decision is likely to add financial pressure on households already grappling with inflation. Students, parents, educational institutions, and businesses may face higher costs for essential stationery products once the new tax rate takes effect.
Industry sources warn that unless lower-cost alternatives become available in the market, consumers across the country are likely to experience an increase in stationery prices due to the higher GST.
The proposed tax hike comes amid a series of revenue-enhancing measures being considered by the government ahead of the federal budget announcement.
