FBR plans MRP tax expansion on milk, infant formula items

Islamabad: The Ministry of Finance is expected to expand the Third Schedule of the Sales Tax Act in the upcoming budget to bring more FMCG items under MRP-based taxation. The proposed expansion may include infant formula, milk, dairy products, edible oil, tea whiteners, sauces, frozen meals, and wheat flour. Officials aim to increase sales tax collection in 2026–27 by improving transparency, reducing tax leakage, and simplifying tax administration. This development under the Governance & Policy Cluster reflects a National revenue reform strategy, with coffee already cited as an example of improved collection after inclusion. For Lahore and Punjab consumers, the move may directly affect household grocery bills and retail prices. Will this step improve tax compliance or increase pressure on families?