Finance Bill 2025 nearly done: Rs200bn new tax measures of GST, FED expected

ISLAMABAD: The Federal Board of Revenue (FBR) has almost finalized Finance Bill (2025-26) and expected to announce new taxation measures of nearly Rs 200 billion of sales tax and Federal Excise Duty (FED) in the fiscal budget (2025-26).

Sources told Business Recorder that the working on the new Finance Bill has been given final touches on Thursday.

The revenue generation measures may include 18 percent sales tax on the import of solar panels.

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Among other proposals, 18 percent sales tax would be imposed on e-commerce.

The FBR has finalized items which would be deleted from the Sixth Schedule (Exemption Schedule) and Eighth Schedule-lower rate of sales tax of the Sales Tax Act.

The government my increase sales tax rate on a large number of items subjected to lower rate of sales tax or concessionary sales tax rates in coming budget (2025-26).

In this regard, the FBR is compiling a list of items on which sales tax rate would be increased. However, some cancer related medical equipment and lifesaving drugs would be added in the sales tax exemption schedule of the Sales Tax Act.

According to sources, the FBR may expand the scope of sales tax on services within the territorial jurisdiction of federal capital in budget (2025-26).

The FBR has also decided to impose 18 percent sales tax on goods manufactured in erstwhile tribal areas in the federal budget (2025-26).

The scope of the Third Schedule would be expanded to include more items for charging sales tax on the basis of printed retail price. The imported chocolates, coffee and imported cereals would be included in the Third Schedule of the Sales Tax Act.

Sources added that the FBR may impose 5 percent FED on a wide range of ultra-processed foods covering frozen foods, chips, carbonated drinks, instant noodles, ice cream, biscuits, frozen meat, sauces, ready-made meals, sausages and many other kinds of ultra-processed foods.

Copyright Business Recorder, 2025