ISLAMABAD: After the opposition members walked out of the lower house, the National Assembly passed the Finance Bill 2026 on Tuesday, with supplementary grants for the outgoing fiscal year scheduled for approval today (Wednesday). All seven opposition amendments were rejected by a majority vote, after which Finance Minister Muhammad Aurangzeb introduced the bill, incorporating amendments suggested by the NA Standing Committee on Finance.
The approved legislation removes the proposed 20 % Federal Excise Duty (FED) on mineral waters, aerated waters, hydration drinks, and electrolyte beverages that contain artificial sweeteners or less than 5 g/100 ml of sugar. Previously, such drinks were uniformly subject to the 20 % levy regardless of sugar content.
Additionally, the bill extends a sales‑tax exemption—originally limited to Pakistan International Airlines—to all airlines operating in the country for the import or lease of aircraft and related parts, effective from 1 July 2027.
Electric vehicles now face an excise‑duty structure tied to their U.S. dollar value. EVs and electric SUVs imported in fully built‑up condition and valued at ≤ $75,000 are exempt from FED. Vehicles valued between $75,000 and $110,000 attract a 30 % duty, while those exceeding $110,000 are subject to a 40 % duty.
The legislation also allows traders with an annual turnover up to Rs 200 million to opt out of the fixed‑tax regime, provided they file a final, irrevocable certificate with the Tax Commissioner before filing their 2027 tax returns. Import‑phase taxes on mobile devices under the Device Identification, Registration and Blocking System (DIRBS) may now be paid in installments, but the full amount must be settled before the end of the financial year of import.
Coal imports will be levied a minimum value‑added tax of 1 % when supplied exclusively to independent power producers. Clauses related to the Climate Support Levy have been removed through amendments to the Petroleum Products Ordinance.
A key provision grants income‑tax exemption to earnings derived by private‑equity and venture‑capital funds registered under the Private Funds Regulations, 2015, provided at least 90 % of the fund’s adjusted accounting income (after deductions for accumulated losses and unrealized capital gains) is distributed to unit‑holders or shareholders. The exemption does not apply if the fund is established to acquire a publicly listed company that remains a public entity post‑acquisition.
Steel manufacturers—including melters, re‑rollers, and composite units—will see tax collected on electricity consumption at rates set by the Federal Board of Revenue (FBR), covering power from captive plants or alternative sources. This tax functions as an adjustable input tax, claimable in the month of payment, with per‑unit rates based on minimum notified prices and industrial electricity benchmarks per ton of steel produced.
The bill was published in Dawn on 24 June 2026.
