Which sectors get major benefits in new budget

The government is planning extensive tax incentives and duty benefits in the national budget for the 2026-27 fiscal year to boost industrialisation, increase investment and create new employment. Measures have also been taken to control inflation and protect local industries by reducing taxes on essential items and increasing duties on import-dependent luxury goods.

According to NBR and finance ministry sources, the core philosophy of this budget is 'production-oriented tax policy'. Tax benefits will be given to industries capable of boosting production, employment and exports. Meanwhile, duties and taxes will be increased on imported goods that compete with local industries.

Major incentives for electronics sector
The electronics and electrical products manufacturing sector is set to receive the biggest benefits. VAT on locally produced televisions, refrigerators, air conditioners, washing machines and other household appliances is planned to be reduced from 15 per cent to 7.5 per cent. Additionally, the period of duty benefits on raw material imports is proposed to be extended until 2030.

Tech products likely to become cheaper
The IT sector will also receive significant incentives. VAT exemption on locally produced laptops, computers, monitors and mobile phones may be extended for several more years. Steps have also been taken to reduce duties on raw materials used in producing mobile phone and computer components. This is expected to lower tech product prices and encourage local production.

Healthcare cost reduction initiative
To make healthcare more accessible, a proposal has been made to withdraw supplementary duties on 68 types of raw materials for the pharmaceutical industry. Additionally, the government is considering VAT and duty concessions on imports of heart rings, eye lenses and life-saving cancer drugs. This is expected to reduce treatment costs.

Tax cuts on essentials to ease inflationary pressure
Significant reductions in source taxes are proposed for nearly 60 essential items including rice, pulses, potatoes, onions, garlic, fish, meat, sugar and edible oil. The current source tax ranging from 1 to 5 per cent is planned to be reduced to 0.5 per cent. The government hopes this will ease inflationary pressure in the market.

Long-term incentives for solar and green energy
Long-term tax exemptions are being provided to encourage the solar power and environment-friendly battery industries. Duty exemptions on solar power equipment imports are proposed to be extended until 2031, and tax-free benefits for solar power generation until 2035.

Incentives for electric and hybrid vehicles
Special tax benefits are being provided for electric car and e-bike production to promote environment-friendly transport systems. Additionally, the withdrawal of regulatory duties on hybrid car imports is under consideration.

Good news for digital creators
Discussions are underway to withdraw the 7.5 per cent VAT and 7 per cent income tax imposed on content creators to strengthen the digital economy. If implemented, YouTubers, digital content creators and online-based creative professionals will directly benefit.

Gold jewellery may become cheaper
A proposal has also been made to replace percentage-based VAT on gold sales with a fixed amount of VAT per unit. This would reduce the tax burden per bhori of gold, potentially lowering gold jewellery prices.

Analysts say these initiatives to encourage industrialisation and investment, along with inflation control measures, could bring new momentum to the economy. However, the extent to which benefits reach ordinary people will depend on market management and implementation effectiveness.