FBR plans tougher sales tax rules on everyday products

Assorted household appliances, groceries, and personal care products arranged on a wooden surface.

FBR plans tougher sales tax rules on everyday consumer goods and household appliances.

| Published June, 9 2026 | Updated

(Web Desk): The FBR is considering new sales tax disclosure requirements on dozens of consumer goods to improve transparency and boost revenue collection.

The Federal Board of Revenue (FBR) is preparing a major crackdown on sales tax evasion as part of the Federal Budget 2026-27, with plans to bring around 20 categories of commonly used consumer products under stricter tax documentation rules.

According to sources, the proposed measure could generate an additional Rs60 billion in sales tax revenue by improving transparency and reducing opportunities for underreporting sales in retail markets.

Under the proposal, selected products would be included in the Third Schedule of the Sales Tax Act.

While these goods are already subject to standard sales tax rates, manufacturers and importers would be required to clearly print both the retail price and the exact amount of sales tax on product packaging.

Officials believe the move will make it easier for consumers to verify tax charges while helping authorities monitor compliance more effectively.

Products reportedly under consideration include packaged dairy items such as milk, yogurt, cheese, milk cream, and tea cream. Baby food, cereals, nutritional supplements, frozen foods, including nuggets and kebabs, may also be covered.

The proposal further extends to personal care products such as toothpaste, toothbrushes, shaving creams, shaving foams, and shaving brushes. Pet food products are also likely to be included.

In addition, the FBR is considering bringing various consumer electronics and household appliances under the enhanced disclosure regime.

These include LED televisions, refrigerators, washing machines, air conditioners, fans, gas stoves, geysers, room coolers, and cooking ranges.

Tax authorities say the initiative is part of a broader effort to expand the documented economy, strengthen tax compliance, and increase revenue collection without imposing major new tax rates.

The final decision is expected to be unveiled in the Federal Budget 2026-27.