Islamabad :As the federal government finalises the Budget for Fiscal Year 2026-27, sources indicate a major shift towards a unified tax regime, potentially ending decades of exemptions for key industries and consumer goods. Driven by the requirements of the ongoing International Monetary Fund (IMF) programme, the government is considering the withdrawal of General Sales Tax (GST) concessions to expand the tax net and bolster national revenue.

According to sources, the agricultural sector, traditionally protected by subsidies, may face significant price hikes. Proposals are under consideration to reduce or completely abolish tax exemptions on tractors and DAP fertiliser. Similarly, the renewable energy sector might see a setback as the government evaluates withdrawing tax facilities currently granted to solar photovoltaic cells.

The automotive industry also awaits a critical decision regarding electric and hybrid vehicles. The budget is expected to determine whether existing tax incentives for eco-friendly transport will be maintained or scrapped in favour of immediate revenue collection.