ISLAMABAD: The amended Finance Bill 2025-26 introduces key changes across tax and customs laws, including relief for long-term homeowners and revised duties on imported goods, as part of broader fiscal reforms aligned with IMF requirements.
Effective July 1, individuals selling immovable property they have occupied for 15 years or more for personal use will be exempt from withholding tax, following recommendations from the National Assembly Standing Committee on Finance.
Significantly, the bill proposes to withdraw the 3% federal excise duty (FED) on property transfers, providing further relief in the real estate sector.
The bill also incorporates Supreme Court directives (from the Taj Company case) into the sales tax law, particularly regarding procedures for arrests and FIRs in tax fraud cases. Arrest safeguards, previously lacking, will now be mandatory under law.
A controversial Energy Vehicles Adoption Levy Act 2025 is also under debate. It proposes a levy on all internal combustion engine vehicles—both imported and locally assembled—but the Standing Committee has urged exclusion of hybrid vehicles. The FBR claims the levy, worth Rs10 billion, is an IMF-agreed measure and warns its removal needs formal consultation.
In customs, the duty- and tax-free import allowance for international courier parcels will be significantly reduced. The current Rs5,000 limit will drop to Rs1,000, with the de-minimis threshold for small gifts reduced to just Rs500, in an effort to curb misuse. FBR officials said the facility is often exploited, with thousands of parcels undervalued to evade duties.
Further, the Finance Bill introduces stricter controls over scrapping and mutilation of goods, capping such permissions at 10% of total cargo and allowing only in genuine cases. It also adds a new clause to prevent delayed or frivolous ownership claims on confiscated goods.
Additionally, importers facing unavoidable clearance delays may benefit from proposed regulatory amendments to protect them, including the option for Customs Collectors to waive penalties in exceptional cases.
These changes reflect the government’s efforts to tighten enforcement, reduce misuse of concessions, and streamline fiscal measures without overburdening genuine taxpayers.
