ISLAMABAD: The Federal Board of Revenue (FBR) has announced a 1% increase in the sales tax on tea, raising it from 17% to 18% on both locally produced and imported tea. This decision, made during a recent Economic Coordination Committee (ECC) meeting, aligns with the government’s ongoing efforts to address fiscal challenges and expand revenue collection.
The FBR’s tax hike on tea is part of a larger strategy to boost Pakistan’s national revenue base as the country grapples with economic pressures and a growing fiscal deficit. As tea is a staple across Pakistan and enjoyed in almost every household, this increase is likely to have a widespread impact on consumers. The price adjustment may make tea slightly more expensive for millions of Pakistanis who rely on it daily.
Economic analysts indicate that, while a 1% increase may seem minimal, it could contribute significantly to the government’s efforts to improve revenue streams. However, the measure could also add to the cost of living, especially as global commodity prices fluctuate. Tea importers and domestic producers are also expected to feel the effects, potentially passing additional costs on to consumers.
This adjustment is one of several measures under consideration by the government to address fiscal challenges.
