Proposal to shift stationery items to standard tax rate sparks concern over affordability and inflation pressures
Millions of Pakistani families could face higher education-related expenses as the government considers increasing sales tax on stationery items from the current reduced rate of 10% to 18% in the upcoming Budget 2026-27, according to sources.
The proposal would bring stationery products under the standard sales tax regime, potentially raising prices of essential school supplies including notebooks, pens, pencils and other learning materials used by students nationwide.
The move comes at a time when households are already grappling with elevated inflationary pressures. Rising fuel costs, driven by geopolitical tensions in the Middle East, have contributed to an increase in the prices of goods and services across the economy, further straining household budgets.
Official data from the Pakistan Bureau of Statistics (PBS) shows that education-related inflation rose by nearly 9% in May 2026 compared with the same period last year, reflecting higher costs of schooling, transport and related services.
Education experts and market stakeholders have warned that any increase in taxation on stationery items could further intensify financial pressure on families, particularly those in low- and middle-income groups.
They argue that stationery products should be treated as essential educational goods and exempted from higher tax brackets to ensure affordability and continued access to basic learning materials.
Critics also caution that the proposed tax hike could negatively affect school enrolment rates, especially in economically vulnerable communities, as rising costs may force parents to reduce educational spending amid already constrained household incomes.
The proposal is expected to be closely monitored as discussions on the federal Budget 2026-27 continue ahead of its presentation in parliament.
