ISLAMABAD: The government has intensified efforts to prevent sales tax evasion in the upcoming fiscal year, with plans under consideration to include around 20 categories of everyday consumer goods in the Third Schedule of the Sales Tax Act, according to sources.
Officials said the move could generate an estimated Rs60 billion in additional revenue, as these items are currently taxed at the standard rate but would be shifted to a more strictly regulated category.
Sources said inclusion in the Third Schedule would effectively apply an 18% sales tax rate and make it mandatory to print retail prices and tax details on product packaging.
The proposal reportedly covers more than 3,000 items across multiple categories of daily-use goods.
Under the plan, from July 1, packaged dairy products such as milk, yogurt, cheese, cream, milk powder and fat-based milk products may be required to display pricing and sales tax information on packaging.
Similarly, infant formula, baby food, cereals and nutritional supplements could also be brought under the same requirement.
Frozen food items including parathas, kebabs, nuggets and other frozen products are also expected to be included.
Household and personal care products such as toothpaste, toothbrushes, shaving cream, shaving foam and grooming accessories may also fall under the new regime.
Condiments including ketchup, mayonnaise, barbecue sauces and pizza sauces are also likely to be affected.
Pet food products may also be required to display tax and price details on packaging.
Sources further said the government is considering extending the measure to electronics and home appliances, including LED TVs, refrigerators, washing machines, juicers and blenders.
Air conditioners, room coolers, fans, gas stoves, geysers and other cooking and heating appliances may also be included in the Third Schedule.
Officials said the proposals are part of broader efforts to improve tax documentation, reduce underreporting and strengthen revenue collection ahead of the new fiscal year.
