The Federal Board of Revenue has proposed extending the sales tax regime to 21 additional categories of retail packaged products, a move that could bring hundreds of consumer goods under the system.

The proposal came under discussion on Thursday during a meeting of the National Assembly Standing Committee on Finance as lawmakers continued their review of the Finance Bill 2026.

Tax officials told the committee that locally manufactured products covered under the proposed mechanism would be required to carry printed retail prices at the manufacturing stage. They said the measure is aimed at curbing tax evasion by businesses that charge full retail prices without paying the corresponding sales tax.

According to the FBR, the proposal would apply only to goods sold in retail packaging. Importers of such products would also be exempted from the additional 4 percent sales tax currently imposed on sales made to unregistered persons.

If approved, the proposal could widen the tax net to include a broad range of packaged consumer goods, including foods, beverages, cosmetics, insecticides and household items.

During the meeting, committee chairman Naveed Qamar cautioned that agricultural sprays should not be unintentionally brought under the new mechanism.

The committee directed the FBR to submit detailed revenue estimates and an assessment of the proposal’s likely impact before any final decision is taken.