ISLAMABAD: The National Assembly Standing Committee on Finance approved the Finance Bill 2026 on Monday after introducing around 30 major amendments that reshaped tax policy, enforcement, and compliance rules.
The committee sent the revised bill to the National Assembly for final approval, where lawmakers will vote clause by clause. Earlier, the Senate committee had submitted 123 recommendations on the legislation.
The committee proposed an instalment-based tax system for imported mobile phones through the Pakistan Telecommunication Authority’s device tracking system. It also introduced digital monitoring for manufacturers, mandatory tax stamps and barcodes for goods clearance, and stricter enforcement tools such as faceless tax assessments and algorithm-based dispute resolution.
Officials added new customs controls, including mandatory ministerial approval for key decisions and reduced limitation periods from 10 years to 5 years. They also ensured taxpayers receive a hearing before asset confiscation, except in urgent cases. Chartered accountants will now serve as non-voting members in tax proceedings.
The committee approved zero duty on electric vehicles under $75,000, while higher slabs will face up to 40% duty. It also exempted Pakistani airlines from aircraft and spare parts import duties from July 1.
In the income tax regime, small businesses with turnover up to Rs200 million will gain the option to exit the final tax regime from tax year 2027. The committee also introduced a 5% withholding tax on social media income and expanded exemptions for select institutions and funds.
The State Bank of Pakistan will create a central digital repository of banking data to support tax collection. Authorities will also impose stricter penalties, including turnover-based fines for repeat violations.
In the steel sector, the committee linked tax collection to electricity consumption, while offering reduced rates for compliant units. It also reduced minimum tax to 0.5% for selected distributors, including pharmaceuticals, food, and consumer goods.
The committee’s report included dissenting notes from two members before submission to the National Assembly.
