Islamabad (Lord Media): The National Assembly’s Standing Committee on Finance has approved tax exemptions for the Mazar-e-Quaid Management Board’s income. Additionally, it has recommended a reduction in duties on imported vehicles by 26 to 56 percent, potentially lowering car prices. These recommendations are part of the Finance Bill 2026, which Finance Minister Muhammad Aurangzeb will present for approval in the National Assembly today.
According to the committee’s final report, these amendments, if approved, will bring significant changes to the country’s tax and tariff system. Besides the Mazar-e-Quaid Management Board, tax exemptions have also been approved for the Make-A-Wish Foundation, provincial employee social security institutions, and the Workers Welfare Fund.
The committee recommended that from 2027, traders can opt out of the fixed tax scheme if their business turnover is up to 200 million rupees. Under the proposed scheme, traders could pay a 1 percent turnover tax to be exempt from audits.
The committee suggested a major tariff reduction in the auto sector, proposing to lower the maximum duty on imported vehicles from 156 percent to 74 percent.
Details reveal that duties on vehicles up to 850 cc will decrease from 66 percent to 42 percent, 1000–1500 cc from 76 percent to 52 percent, 1500–1800 cc from 91 percent to 57 percent, over 1800 cc from 156 percent to 74 percent, 86 percent FED on SUVs over 2000 cc, and 92 percent tax on those over 3000 cc. The maximum tariff on auto parts is recommended to be reduced from 61 percent to 45 percent.
The committee has approved a 0.5 percent minimum tax on various sectors, including pharmaceuticals, fertilizers, cigarettes, sugar, mobile phones, food processing, electronics, and daily-use items. A sales tax of 30 rupees per unit has been approved for the steel sector.
The proposal to impose a fine of 100,000 rupees for late tax return submission was rejected, but a condition of a six-month property registration ban was included. The National Assembly panel recommended tax exemptions for all airlines to eliminate discrimination, with the exception that this relief for airlines other than PIA will be effective from July 2027.
