The Senate Standing Committee on Finance and Revenue has recommended abolishing sales tax on educational stationery, arguing that taxation on school supplies is making education more expensive for millions of families.

During deliberations on the federal budget, committee members urged the government to provide relief on essential educational items. Senator Mohsin Aziz proposed reducing the sales tax on stationery products to zero, maintaining that students and parents should not bear additional financial pressure through taxes on basic learning materials.

The discussion later expanded to tax exemptions granted to charitable hospitals and educational institutions, with lawmakers questioning whether some organizations benefiting from tax concessions still qualify as genuine non-profit entities.

Senator Farooq H. Naek raised concerns that several institutions charge significant fees while continuing to enjoy tax privileges intended for charitable organizations. He argued that exemptions should be reviewed to ensure they are not being misused.

Tax policy officials acknowledged concerns over large cash transactions at certain institutions, noting that substantial collections often remain outside the documented financial system.

Committee Chairman Senator Saleem Mandviwalla observed that an earlier proposal to eliminate cash counters at such organizations had failed to materialize because of opposition from powerful interest groups.

Mandviwalla emphasized the need to reassess tax exemption provisions and strengthen monitoring mechanisms to improve transparency and accountability.

The committee’s recommendations signal a push for cheaper educational supplies while increasing scrutiny of hospitals and educational institutions benefiting from tax exemptions.