Budget 2026/27: Committee To Be Formed To Assess Feasibility Of Multi-Rate System In VAT

The government plans to form a high-level committee to evaluate the feasibility of a multi-rate VAT system and has introduced reforms to transform tax administration into a partner in development. A special discount scheme will address long-standing tax disputes, waiving all fees, fines, and penalties if an additional one percent of the tax amount is submitted within the timeframe. Resources saved from reducing the number of federal ministries will be allocated to improve administrative efficiency, with an estimated saving of Rs 20 billion.