Pakistan’s National Assembly passes the Finance Bill 2026-27 during a parliamentary session.
Pakistan’s National Assembly on Monday passed the Finance Bill 2026-27 by a majority vote after rejecting all amendments proposed by opposition members.
European Leaders Praise Outgoing UK Prime Minister
During the session chaired by Speaker Sardar Ayaz Sadiq, lawmakers reviewed the bill clause by clause. However, the House rejected amendments moved by Aliya Kamran, Naeema Kishwar and Shahida Akhtar Ali. Meanwhile, Ali Qasim Gilani withdrew his proposal before voting began.
Among the major changes, the Assembly removed Clause 3 linked to the Petroleum Levy and Climate Support Levy. In addition, lawmakers approved an amendment to the Customs Act that gives affected parties the right to present their case before authorities confiscate assets.
The House also endorsed amendments allowing chartered accountants to serve as non-voting members in customs and tax cases. Furthermore, lawmakers approved a new sales tax collection model for the steel sector based on electricity consumption per unit.
Several tax relief measures also received approval. These included incentives for digitally integrated and POS-linked footwear businesses. In addition, lawmakers extended sales tax exemptions on aircraft and spare parts imports to airlines beyond Pakistan International Airlines (PIA). Certain exemptions will take effect from July 1, 2027.
Meanwhile, the Assembly approved a plan allowing taxes on imported mobile phones to be paid in instalments. Lawmakers also allowed businesses with annual turnover of up to Rs200 million to opt out of the final tax regime. Additionally, authorities will now consider business losses caused by economic conditions when assessing economic viability.
The House further authorised the State Bank of Pakistan to create a central virtual repository of banking data. At the same time, lawmakers approved higher surcharges on non-filers and introduced a five percent withholding tax on income earned through social media platforms.
Moreover, the Assembly granted tax concessions to private equity and venture capital funds under specific conditions. It also reduced the minimum tax rate to 0.5 percent for distributors in the pharmaceutical, fertiliser, sugar and electronics sectors. Exporters generating more than 80 percent of their turnover from exports will also receive exemption from Super Tax Clause C-4.
Lawmakers additionally approved measures making taxes deducted from social media payments to non-residents adjustable. They also required proof of deliberate intent for violations under the Federal Excise Act. Furthermore, chartered accountants may now join tax dispute resolution committees when necessary.
The House also approved giving registered taxpayers the right to challenge a nominated auditor within 15 days. In addition, lawmakers maintained zero federal excise duty on imported electric vehicles valued at up to $75,000. However, imported EVs priced between $75,000 and $110,000 will face a 30 percent duty, while those above $110,000 will be subject to a 40 percent duty.
Meanwhile, the bill introduced incentives for industries connected to the digital invoicing system. It also fixed federal excise duty at 86 percent for imported vehicles with engine capacities between 2,000cc and 3,000cc and at 92 percent for imported vehicles exceeding 3,000cc.
Finance Minister Muhammad Aurangzeb presented the Finance Bill before the House approved it through a majority vote. Afterwards, the National Assembly adjourned its session until 11am on Tuesday.
