Pakistan Budget 2026-27: Complete List of What Gets Cheaper & Expensive

Pakistan Budget 2026-27 — Complete List: What Gets Cheaper & What Gets More Expensive

Finance Minister Muhammad Aurangzeb presented the Federal Budget 2026-27 on June 12, 2026. With a total outlay of Rs 18.77 Trillion, this budget brings a mixed bag for Pakistani consumers — some major relief items and some price hikes. Here is the complete official list of what gets cheaper and what gets more expensive.

Bottom Line: Cosmetics, solar panels, air tickets, and property transactions get cheaper. Large vehicles, cigarettes, fertilisers, and pesticides get more expensive.

Items Getting CHEAPER in Budget 2026-27

Cosmetics & Personal Care

Item	Reason
Face Powder & Mascara	Import duty reduced
Shampoo & Soap	Tax relief announced
Sanitary Pads	Tax completely removed
Contraceptives	Tax completely removed
Skin Care Products	Duty reduction proposed

Air Travel & International Transactions

Item	Change
Airline Tickets (Online Purchase)	Withholding tax reduced
International Credit/Debit Card Transactions	Tax slashed from 5% to 0.5%
Foreign Currency Exchange	Transaction tax relief

Property & Real Estate

Transaction Type	Old Tax	New Tax
Property Purchase (Filers)	2.5%	1.25%
Property Sale (Filers)	5.5%	2.75%
Capital Value Tax on Foreign Assets	Applied	Abolished

Solar Panels & Energy

• Solar panels — existing tax exemptions maintained, no new taxes
• Solar energy equipment import duty relief continued
• Renewable energy sector protected from new levies

IT, Freelancers & Telecom

• IT export income tax rate: 0.25% concessional rate extended to 2029
• Freelancers Final Tax Regime extended to 2030
• 5G machinery & telecom equipment — import tax reduced
• Advance income tax on exports reduced

Manufacturing & Industry

• Raw material import duty reduced to 1%
• Auto parts for local manufacturing — duty cut from 20% to 10%
• Local manufacturing parts duty from 10% to 5%

Healthcare

• Essential medicines — import duties reviewed for reduction
• Medical equipment for hospitals — duty relief proposed

Items Getting MORE EXPENSIVE in Budget 2026-27

Vehicles (Big Cars Hit Hard)

Vehicle Type	New Levy
Petrol/Diesel Cars 2001cc – 3000cc	10% Environmental Levy
Petrol/Diesel Cars above 3000cc	19.5% Environmental Levy
Electric Vehicles (EVs)	Price increase expected (IMF pressure)
Hybrid Vehicles	Price increase expected
Plug-in Hybrid Vehicles	Price increase expected

Tobacco & Cigarettes

• Cigarettes — Federal Excise Duty increased
• Electronic cigarettes (e-cigs) — Duty increased
• Vape liquids — Duty increased

Agriculture Inputs

• Fertilisers — New levy imposed
• Pesticides — New levy imposed
• This may affect food prices if farmers pass on costs

Social Media Earners

• Social media content creators & digital earners — 5% income tax introduced

Petroleum Products

• Carbon Levy Rs 2.5 per litre on petrol, diesel, furnace oil
• This levy is set to increase to Rs 5/litre in FY2026-27

Quick Summary Table

Category	Status
Cosmetics, Soap, Shampoo	Cheaper
Sanitary Pads & Contraceptives	Tax Removed
Air Tickets	Cheaper
Property Purchase & Sale	Tax Halved
Solar Panels	No New Tax
IT Services & Freelancing	Tax Relief Extended
Credit/Debit Card Abroad	5% → 0.5%
Large Cars (2000cc+)	10–19.5% New Levy
EVs & Hybrid Vehicles	More Expensive
Cigarettes & Vapes	More Expensive
Fertilisers & Pesticides	New Levy
Petrol & Diesel	Rs 5/litre Carbon Levy
Social Media Income	5% New Tax

FAQs

Q: When do these price changes take effect?
A: From July 1, 2026 — the start of fiscal year 2026-27.

Q: Will petrol prices increase due to this budget?
A: The carbon levy of Rs 2.5–5/litre applies to fossil fuels, which may impact petrol prices gradually.

Q: Are solar panels getting more expensive?
A: No. The government has maintained existing exemptions for solar panels. No new taxes have been imposed.

Q: Which vehicles are most affected?
A: Cars above 2000cc engine capacity face a 10–19.5% environmental levy. EVs and hybrid vehicles may also see price hikes.