The federal government has unveiled the budget 2026-27 on Friday. With the unveiling of the budget, the following items are expected to become expensive.
Owners of vehicles above 2,000cc will face higher taxes, pushing prices up further in the large car segment. Duties on electronic cigarettes and liquids have also been increased. Fertilisers and pesticides will become more expensive following new levies.
In a significant new measure, income earned through social media will attract a 5% tax — a move that brings digital content creators into the tax net for the first time.
For the tobacco and vaping sector, the government has increased FED on e-liquids for electronic cigarettes to Rs16,500 per kg, up from Rs10,000 per kg, while also removing the previously applied high retail price-based tariff of up to 65%.
The minimum tax rate for distributors and wholesalers has been increased from 0.25% to 0.5%, further tightening the taxation framework for supply chain businesses.
