Pakistan’s federal budget for FY2026-27 brought a mixed bag for consumers, with taxes raised on large vehicles, cigarettes, fertilisers, and pesticides, while relief has been extended to air travellers, property buyers, and the solar energy sector.
Solar panels will see no price increase, with the government maintaining existing exemptions for the sector.
Air tickets are expected to become cheaper, with online ticket purchases set to attract lower taxes.
Cosmetics and beauty products are also expected to see a price reduction.
Property transactions are likely to pick up following relief measures in the budget.
Withholding tax on property transfers for filers has been halved from 2.5% to 1.25%, while capital value tax on foreign assets has been abolished entirely.
