**National Assembly Passes Finance Bill 2026-27: New Taxes Set for Salaries, Property, and Vehicles from July 1**

**ISLAMABAD** — The National Assembly has officially passed the Finance Bill 2026-27 clause by clause, paving the way for sweeping tax reforms across Pakistan effective from July 1, 2026.

The new budget introduces major amendments to the Income Tax Ordinance, Sales Tax, and Customs laws. It directly impacts salaried individuals, social media influencers, corporate entities, and real estate transactions, while offering structural relief for mobile phone buyers and small-vehicle importers.

### New Income Tax Slabs for Salaried Individuals

Under the newly approved finance bill, individuals earning up to PKR 600,000 annually remain completely exempt from income tax. For income above this threshold, the new tax brackets are structured as follows:

 * **PKR 600,000 to 1,200,000:** 1% tax on the amount exceeding 600,000.

 * **PKR 1,200,000 to 2,200,000:** A fixed PKR 6,000 plus 11% on the exceeding amount.

 * **PKR 2,200,000 to 3,200,000:** A fixed PKR 116,000 plus 23% on the exceeding amount.

 * **PKR 3,200,000 to 4,100,000:** A fixed PKR 346,000 plus 25% on the exceeding amount.

 * **PKR 4,100,000 to 5,600,000:** A fixed PKR 541,000 plus 29% on the exceeding amount.

 * **PKR 5,600,000 to 7,000,000:** A fixed PKR 976,000 plus 32% on the exceeding amount.

 * **PKR 7,000,000 and above:** A fixed PKR 1,424,000 plus 35% on the exceeding amount.

### Taxes on Social Media, Real Estate, and Corporates

The government has tightened the net on digital earnings, property dealings, and high-earning corporate sectors:

 * **Social Media Monetization:** Under Section 151B, a 5% withholding tax has been leveled on income generated from social media platforms, including YouTube and Facebook.

 * **Real Estate Transactions:** Property sellers will now face a 2.75% advance tax on the gross transaction value, while buyers will pay a 1.25% advance tax based on the fair market value. Inherited property tax laws have also been amended.

 * **Corporate and Banking Sector:** Banking companies and the fertilizer sector will face a 10% tax on annual income exceeding PKR 150 million. Other corporate entities earning over PKR 500 million will be taxed at 8%.

### Revised Import Duties on Vehicles and Mobile Phones

The new automotive policy introduces a steep hike in duties for high-end luxury vehicles, while significantly slashing duties on smaller imported cars to relieve middle-class consumers:

| Vehicle Category / Type | New Duty & Tax Rate | Previous Rate / Details |

|---|---|---|

| **Up to 850 cc (Imported)** | **42%** | Slashed down from 66% |

| **1000 cc to 1500 cc (Imported)** | **52%** | Slashed down from 76% |

| **Above 1500 cc Cars** | **57%** | Reduced from 91% |

| **1800 cc Cars** | **74%** | Reduced from 156% (Special Excise Duty abolished) |

| **2000 cc to 3000 cc (Imported)** | **86%** | High luxury category duty imposed |

| **Above 3001 cc (Imported)** | **92%** | Top luxury category duty imposed |

| **Electric Vehicles (Luxury EVs)** | **30% to 40%** | 30% duty up to $75k value; 40% duty above $110k value |

> **Relief for Mobile Users:** In a major consumer-friendly move, the government has announced that PTA registration taxes on both new and used imported mobile phones can now be paid in easy monthly installments starting July 1.

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### FBR Digitalization and Legal Penalties

To increase transparency, the Federal Board of Revenue (FBR) is rolling out a brand new "Faceless Audit" and "Faceless Assessment" mechanism. Sales tax handling will lean heavily into e-hearings and digital invoicing.

Concurrently, the law introduces severe criminal penalties for individuals issuing fake or flying invoices, alongside fines reaching up to PKR 5 million for unregistered and disconnected businesses.

### Exemptions and Special Statuses

The Finance Bill grants complete tax immunity to several welfare and national organizations, including the Pakistan Red Crescent Society, Shaheen Foundation, PAF Welfare, Dawat-e-Hadiyah, Pakistan Navy Benevolent Association, and Sindh Institute of Urology and Transplantation (SIUT).

Provincial Employees Social Security Institutions, welfare setups in Orangi Town, the Make-A-Wish Foundation, and the Quaid-e-Azam Mazar Management Board have also been secured under special tax-exempt or relaxed classifications. Meanwhile, the 1% sales tax on electric buses and trucks will remain unchanged.