As preparations for the 2026-27 federal budget enter their final phase, a proposal to increase the General Sales Tax (GST) on stationery items is being considered in consultations with the International Monetary Fund (IMF).
If approved, the move could make educational and office supplies significantly more expensive, adding to the financial burden on parents, students and middle-class households.
According to sources, the government is reviewing various taxation measures as part of budget discussions and ongoing consultations with the IMF.
Among the proposals under consideration is an 8% increase in GST on stationery products. The proposal would raise the current sales tax rate from 10% to 18%.
Educational supplies may become more expensive
If the proposed tax increase is approved, a wide range of stationery and educational products could see price hikes. Items likely to be affected include notebooks, copies, registers, pens, pencils, ink and other commonly used educational materials.
Other office supplies are also expected to become more expensive under the proposed tax structure.
Parents and students may face burden
The potential increase has raised concerns about its impact on household budgets, particularly at a time when families are already coping with rising living costs.
Parents, students and middle-income groups are expected to be among those most affected if stationery prices rise following the increase in GST.
Education-related expenses could increase further, especially for families with multiple school-going children.
IMF-linked tax proposals being reviewed
Sources say work on tax proposals for the new fiscal year is continuing in consultation with the IMF. The proposed increase in GST on stationery forms part of a broader review of revenue measures being examined ahead of the budget announcement.
However, no final decision has yet been made.
The proposal remains under consideration and will only take effect if it is approved as part of the federal budget and subsequently cleared through the parliamentary process. Officials say the final decision will become clear once the budget is presented and approved.
If adopted, the revised GST rate would be implemented from July 1, 2026.
For now, the proposed increase remains one of several tax measures being discussed during the final stages of budget preparation.
Whether educational and office expenses see a major increase will depend on the government's final budget decisions and parliamentary approval in the coming weeks.
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