Finance Bill 2026, part 2
The Finance Bill 2026 is part of the federal budget for FY 2026-27. This page reproduces the text of its 110 PDF pages, extracted automatically from the official PDF published by the Federal Board of Revenue.
This text was extracted automatically from the PDF's text layer. Tables may lose their column alignment, and a page with no text layer is marked rather than guessed. Check the official PDF before relying on any figure.
Page 101
“(3A) If, at any stage of the proceedings before him, if the
Commissioner is of the opinion that having regard to, -
(a) the nature and complexity of the accounts; or
(b) volume of the accounts; or
(c) doubts about the correctness of the accounts; or
(d) multiplicity of transactions in the accounts; or
(e) specialized nature of business activity of the
registered person, and interests of the revenue, is
of the opinion that it is necessary so to do, he may,
after giving the registered person a reasonable
opportunity of being heard, and with the previous
approval of the Chief Commissioner, direct the
registered person to get either any or all of the
following to get the -
(i) accounts re-audited by an accountant, and to
furnish a report of such audit duly signed and
verified by such accountant including
answers to the specific queries as the
Commissioner may require; and
(ii) inventory re-valued by a cost accountant,
and to furnish a report of such inventory
valuation duly signed and verified by such
cost accountant including answers to the
specific queries as the Officer of Inland
Revenue may require;Page 102
Explanation.- The accountant or the cost
accountant, as referred to in this sub-section shall
be nominated by the Commissioner for the
purposes of the said sub-section from amongst the
panel of such accountants or cost accountants
nominated by the Board.”;
(14) in the First Schedule,-
(1) in Table-1, in column (1),-
(a) against S. No. 7a, in column (4), for the words “forty four”,
the word “ten” shall be substituted;
(b) against S. No. 8a, in column (4), for existing entries, the
following shall be substituted, namely:-
“Rupees sixteen thousand five hundred per kg”
(c) against S. No. 55 and 55B, in column (2), for the
expression “2026”, the expression “2027” shall be
substituted;
(d) after S. No. 55, the following new S. No. and entries
relating thereto in columns (2), (3) and (4) shall be inserted,
namely:-Page 103
Electric cars, electric Respective
SUVs, and electric Heading
pickup vehicles,
imported for personal
use in CBU condition,
of import value
including Custom
Duty:-
“55A
(a) Not exceeding 0%
PKR 20 million
(b) exceeding 30%
PKR 20 million and
upto PKR 30 million
(c) exceeding 40%”
PKR 30 million
(e) against S. No. 59, in column (2), for the words “excluding
mineral and aerated waters”, the expression “excluding
mineral waters, aerated waters, hydration drinks or
electrolyte beverages specifically formulated to support
hydration, electrolytes replenishment not containing sugar
exceeding 5g/100 ml or artificial sweetener” shall be
substituted;
(f) for entry 63, and entries relating thereto in columns (2), (3)
and (4), following shall be substituted, namely: -Page 104
2710.1951
Lubricating oil and base 2710.1952 Five percent
“63
lubricating oils 2710.1953 ad valorem.”;
2710.1993
(g) after S. No. 64 and entries relating thereto in columns (2),
(3) and (4), the following new S. No. and entries relating
thereto shall be added, namely:-
(i) Petroleum top (i) Rs. 80
2710.1942
Naphtha per liter
(ii) White
Spirit/Mineral (ii) Rs. 80
“65 2710.1240
Turpentine Oil per liter
(MTT)
(iii) Rs. 80
(iii) Solvent Oil 2710.1250
per liter.”;
(h) in Table-1, for Restriction-2, the following shall be
substituted, namely:-
“(2) Restriction-2 - Brand variants at different price
points.- No manufacturer or importer of cigarette can introduce
or sell a new variant of the existing brand at a price lower than the
lowest actual price of the existing brand. For the purposes of this
restriction, current minimum price of existing brand means the
lowest price of an existing brand on the day of announcement of
Budget of the current financial year.Page 105
Explanation.- For the purpose of this restriction, brand variant
means any cigarette brand with identical name, trademark,
design, pattern or any unique distinguishing mark associated with
an existing brand.”;
(2) after Table-1 amended as aforesaid, the following new
Table shall be inserted, namely:-
“Table IA
S. Description of Heading/sub- Rate of duty
No. goods heading
Number
(1) (2) (3) (4)
1. Imported motor 87.03
cars, SUVs and
other motor 8704.2190
vehicles, excluding 8704.3190
auto rickshaws,
principally
designed for the
transport of
persons (other
than those of
headings 87.02),
and till the 30th day
of June, 2027
electric vehicles (4Page 106
wheelers)
including station
wagons, double
cabin (4x4) pickup
vehicles and racing
cars:
(a) of cylinder 40% ad val
capacity exceeding
2000cc but not
exceeding 3000cc
(b) of cylinder 41% ad val.”;
capacity exceeding
3000cc
(3) in Table-II, in column (1), against S. No. 3, in column (2), for sub-
clause (ii) of clause (b) and entries relating thereto in column (4),
the following shall be substituted, namely: -
“(ii) Club, business and first class
air tickets issued on or after the
1st day of July, 2026:
(a) IATA Traffic Conference Area (a) Fifty thousand rupees
1 (North, Central, South America
and Environs)
(b) IATA Traffic Conference Area
2 (b)(I) Twenty-five thousand
(I) Middle East and Africa rupeesPage 107
(II) Europe
(c) IATA Traffic Conference Area (b)(II) Forty thousand rupees
3 (Far East, Australia, New (c) Forty thousand rupees”;
Zealand and Pacific Islands)
(15) in the Second Schedule, after the omitted S. No. 4, in column (1) and
entries relating thereto in columns (2) and (3), the following new S. No.
shall be inserted, namely:-
Imported and locally produced:
(i) Petroleum top Naphtha 2710.1942
“5. (ii) White Spirit/Mineral Turpentine Oil (MTT) 2710.1240
(iii) Solvent Oil 2710.1250”;
and
(16) in the Third Schedule, in Table-I, after S. No. 27, in column (1) and
entries relating thereto in columns (2) and (3), the following new S. No.
shall be inserted, namely:-
Import of bullet proof vehicles by Respective
“28. the: heading.”.
i) Federal Government for logistic
arrangements for Shanghai
Cooperation Organization (SCO)
summit subject to the prior
approval from the Ministry of
Foreign Affairs and the Ministry of
Interior and Narcotics ControlPage 108
ii) By the Federal Government or
Provincial Government for threat
of terrorism against a public
functionary as determined by the
Ministry of Interior and Narcotics
Control, subject to approval by
the Federal Government”.
8. Amendments of the Finance Act, 2022 (XIII of 2022). - In the Finance Act,
2022 (XIII of 2022), in section 8, -
(1) in sub-section (2), -
(a) in clause (ab), the word “and” at the end shall be omitted;
(b) in clause (ac), after the semicolon occurring at the end, the word
“and” shall be added; and
(c) clause (b) shall be omitted;
(2) in sub-section (3), -
(a) in clause (b), in the proviso, after the semicolon occurring at the
end, the word “and” shall be added; and
(b) clause (c) shall be omitted;
(3) in sub-section (4), in clause (g), for the expression “(ab), (ac) and (b)”,
the expression, “(ab) and (ac) shall be substituted;
(4) in sub-section (13), clause (c) shall be omitted; and
(5) in the First Schedule, in the Table, in column (1), S. No. (4) and entries
relating thereto in columns (2) and (3) shall be omitted.Page 109
STATEMENT OF OBJECTS AND REASONS
The purpose of this bill is to make financial provisions for the year beginning on
the first day of July, 2026 and it shall come into force on the first day of July, 2026
(Senator Muhammad Aurangzeb)
Minister for Finance & RevenuePage 110
STATEMENT OF ESTIMATED TAX EXPENDITURE
Section 8 of Public Finance Management Act, 2019 provides that The
Federal Government shall, in respect of every financial year cause to be laid down
before the National Assembly, Finance Bill consistent with Article 73 of the Constitution
including a statement of estimated tax expenditure of the Federal Government.
2. A Tax Expenditure Report 2026 providing the details of tax expenditure
in FY 2024-25, which involves tax expenditure in Sales Tax of Rs. 1,273.98 Billion, a
tax expenditure in respect of Customs Duty of Rs. 499.14 Billion and tax expenditure
in respect of Income Tax of Rs. 579.70 Billion, arriving at a total estimated tax
expenditure of Rs. 2,352.81 Billion is being laid before the Parliament.