Stock market, stationery items and solar panels: Tax rates to remain unchanged

ISLAMABAD: The taxation on stock market, stationery items and solar panels would remain the same in budget (2026-27).

According to sources, the proposal to increase sales tax from 10 to 18 percent on solar panels has been dropped. Similarly, the proposed increase in sales tax on stationery items would not be implemented in coming budget. Stock market taxes would not be changed from July 1, 2026.

The proposed reduction in taxes for the real estate sector has yet not been finalized.

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The highest income tax slab threshold for the salaried individuals would be adjusted upward but the surcharge/penalty on highest income earners would be abolished in budget.

The one percent tax on exports may likely be abolished in coming budget (2026-27) under a proposed package for exporters to be announced in the budget speech, highly placed tax officials said.

The Finance Act 2024 shifted exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR), replacing the one percent turnover tax with a minimum 2 percent tax on export proceeds- one percent minimum tax and one percent advance tax, deducted upon realization electronically at source.

The industry has proposed to reinstate the Final Tax Regime (FTR) as optional with a one percent turnover tax, ensure timely sales tax refunds, and provide tax relief for exporters facing losses with a transparent mechanism. The exporters who wish to remain in NTR should be protected from any undue harassment from FBR by forming a Special Committee to protect their rights.

Copyright Business Recorder, 2026