Islamabad: The International Monetary Fund (IMF) has reportedly urged the government to immediately withdraw the 10% sales tax exemption currently granted on stationery products for the upcoming national budget.
Following this recommendation, authorities are seriously considering increasing the sales tax on stationery items to 18% in the Finance Bill 2026.
If approved, the decision is expected to come into effect from July 1, 2026, leading to a significant rise in the prices of notebooks, registers, pens, pencils, and other educational and office supplies.
According to sources, the IMF has given in-principle approval for imposing an 18% General Sales Tax (GST) on stationery products from the start of the new fiscal year. The government is working on a broader policy to phase out or reduce tax exemptions across multiple sectors in the 2026–27 budget, with stationery being one of the key affected areas.
Experts say the removal of tax relief will nearly double the tax burden on stationery items.
They warn of wide-ranging impacts, including:
- Students and parents: Higher educational expenses due to increased prices of basic learning materials
- Offices and businesses: Increased operational costs for stationery procurement
- Schools and institutions: Possible rise in fees due to increased administrative expenses