Stationery items: Senate body recommends ST relief

ISLAMABAD: The Senate Standing Committee on Finance on Tuesday accepted a major proposal of the stationery industry to restore sales tax exemption on stationery items from July 1, 2026.

The Committee meeting, chaired by Saleem Mandviwalla, continued deliberations on the Finance Bill 2026-27 during its fourth consecutive session at Parliament House, reviewing a wide range of fiscal, trade, industrial and taxation matters aimed at strengthening economic growth, supporting exports and addressing public concerns.

Dr. Najeeb Memon, Director General of the Tax Policy Unit at the Ministry of Finance, informed the committee that the International Monetary Fund (IMF) had urged Pakistan to reduce its reliance on sales tax exemptions.

He further stated that stationery items do not fall under the category of essential food items and, therefore, do not qualify for sales tax exemption.

READ MORE: 18pc ST to be imposed on stationery items

However, committee members expressed serious concern over the proposed tax on essential educational supplies, including pencils, pens, geometry boxes and other items used by students in schools.

Representatives of the Federation of Chambers of Commerce and Industry’s Stationery and Taxation Committee also urged lawmakers to reconsider the proposal and exempt educational materials from taxation.

Riyaz-ud-Din, speaking before the committee, called for exemptions on items such as sharpeners, exercise books, glue, writing pads and colour pencils used for educational purposes. He said the government had earlier decided not to impose the full 18 percent sales tax on stationery and argued that any such levy would be inappropriate given its impact on education costs.

Members of the committee echoed these concerns, stating that the proposed measure would further increase the cost of education for families already facing financial pressures.

The committee recommended that essential educational materials be exempted from the proposed tax to prevent additional financial strain on students and ensure access to affordable learning resources.

The committee also examined taxation measures relating to education and charitable institutions. Members discussed proposals aimed at supporting educational access and reviewing existing tax exemption mechanisms. Following consultations with relevant authorities, the committee recommended amendments to the applicable legal provisions to ensure greater transparency, effectiveness and alignment with public interest objectives.

Copyright Business Recorder, 2026