WHT on sale of 15-year self-owned homes to end from July 1
The Federal Board of Revenue (FBR) has incorporated this amendment into the Finance Bill (2025-26) on the recommendation of the National Assembly Standing Committee on Finance. The amended Finance Bill (2025-26) has proposed major changes in the federal tax laws from July 1, 2025.
The amended Finance Bill (2025-26) has incorporated all changes recommended by the Senate on placing safeguards before arrest of persons involved in tax fraud.
Withdrawal of 3pc FED on property transfer proposed
The amended Finance Bill (2025-26) has also revised the entire sales tax law in line with the judgement of Supreme Court of Pakistan in case of Taj Company. These changes mainly related to the arrest of persons and registration of FIRs against those involved in tax fraud.
On the recommendation of National Assembly Standing Committee on Finance, the government may abolish new Energy Vehicles Adoption Levy on hybrid vehicles.
Through Finance Bill (2025-26), the government has proposed new Energy Vehicles Adoption Levy Act, 2025. There stand imposed a levy to be collected and paid to the Federal Government by every manufacturer on every internal combustion engine motor vehicle manufactured or, as the case may be, assembled and supplied by him and every person on every internal combustion engine motor vehicle imported by him into Pakistan.
The FBR chairman categorically said that the levy has a revenue impact of Rs10 billion and exclusion of hybrid vehicles needs consultation with the IMF. This revenue measure has been agreed with the IMF.
Naveed Qamar, chairman of the finance committee responded that the FBR has granted exemptions to certain categories of vehicles from this levy. The FBR should also include hybrid vehicles in the said exclusion list.
The amended Finance Bill (2025-26) has also withdrawn a major customs related amendment to disallow duties and taxes free import of small courier and postal parcels/gifts (upto value of Rs5,000) coming through international courier, impacting thousands of parcels per day.
From July 1, 2025, the Customs Department would only allow duties/taxes free import of small gift parcels having values upto Rs1,000.
National Assembly Standing Committee on Finance outrightly rejected the FBR proposal.
According to the FBR chairman, in a bid to plug loopholes in small parcel imports, the de-minimise limit for courier and postal parcels has been reduced to Rs500, curbing misuse. The facility for scrapping and mutilation of goods at ports will now only be allowed for genuine requests and limited to 10 per cent of total cargo.
Additionally, a new clause has been added to prevent belated and frivolous claims of ownership for goods liable to confiscation. FBR Member Customs (Policy) Wajid Ali informed the committee that containers are coming into Pakistan loaded with thousands of small parcels with declared value upto Rs5,000 to misuse of the facility.
We are unable to take any action against small parcels due to existing de-minimise limit of Rs5,000.To deal with the issue of genuine reasons for delay of clearance of imported consignments, the amended Finance Bill (2025-26) may incorporate in Customs Act, 'customs department shall issue regulations to protect interest of importers if circumstances are beyond their control', it added.
In case of unavoidable circumstances, the Collector of Customs can waive penalty, Ali added.
Copyright Business Recorder, 2025
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Moreover, to avoid any confusion, the Federal Board of Revenue (FBR) has been requested to implement a foolproof mechanism at all operational ginning factories to ensure accurate and real-time reporting of the cotton received and processed. This step is essential for enhancing transparency, strengthening data integrity, and supporting coordinated efforts across institutions involved in cotton monitoring and policy formulation. The Punjab Agriculture Department has emphatically clarified that the official record of national cotton production is based on crop reporting estimates compiled from all provinces. Therefore, drawing comparisons with the fortnightly data of cotton arriving at ginning factories lacks justification. The Department has reaffirmed its commitment to constructive collaboration with all institutions, including the Pakistan Cotton Ginners Association (PCGA), to safeguard the interests of the public, private stakeholders, and cotton farmers, and to support the development of evidence-based agricultural policies. The full leadership of the Pakistan Cotton Ginners Association (PCGA) met with Provincial Minister for Excise and Narcotics, Mukesh Kumar Chawla, at his office to express their gratitude. The delegation included Vice Chairman Raja Ramesh Kumar Utwani, former Chairman Mahesh Kumar, FPPCI Task Force Chairman Sham Lal Manglani, former Vice Chairman Harish Kumar Vedani, Chandar Lal, Kishan Hamrajani, Dilip Kumar, Ladu Mal, Thal Ram Ladkani, Rajesh Kumar Newand Rai, Sham Lal Mirpurmthelo, and Besham Lal. During the meeting, Mukesh Kumar Chawla announced the permanent abolition of professional tax and excise tax on cotton ginning industries, a move for which the PCGA expressed deep appreciation. The association had also requested the elimination of the market committee fee, to which the minister responded positively, giving hope for a favourable outcome. Sajid Mahmood, Head of the Technology Transfer Department at the Central Cotton Research Institute (CCRI) Multan, in a telephonic conversation with renowned cotton analyst Naseem Usman, stated that cotton is the backbone of Pakistan's economy. Unfortunately, this vital crop has been in steep decline for the past several years. He welcomed the Cabinet Committee meeting held on August 7, 2025, chaired by Senator Ishaq Dar, terming it a positive development. He said the meeting featured comprehensive discussions on cotton production, seed quality, modern technology, climate challenges, and the role of research institutions. The focus on translating policy recommendations into actionable steps rather than mere paperwork reflects the government's serious intent. Sajid Mehmood stressed that research and innovation are indispensable for reviving the cotton sector and emphasized the urgent need for financial support to institutions like the Pakistan Central Cotton Committee (PCCC). He termed the recent MoU signed between PCCC and the All Pakistan Textile Mills Association (APTMA) a significant step forward, noting that its full implementation could help reactivate research activities. Furthermore, he supported the proposed merger of PCCC with the Pakistan Agricultural Research Council (PARC), arguing that this would unify resources, experts, and infrastructure to enable the development of disease-resistant and climate-resilient cotton varieties. Highlighting the central role of seed quality in cotton production, he called for a strict ban on the sale of substandard and uncertified seed varieties. He proposed the establishment of a 'Seed Quality Surveillance System' incorporating DNA fingerprinting, germination tests, varietal purity checks, and a digital traceability system from seed development to market availability. He also stressed the importance of subsidies for small farmers on inputs such as fertilizers, pesticides, and machinery, along with the timely announcement and enforcement of a support price to protect farmers from market uncertainty. In conclusion, Sajid Mehmood emphasized that the textile industry should not be viewed merely as a consumer of cotton but as a collaborative partner in research and development initiatives. He also recommended forming an independent monitoring commission comprising agricultural experts, farmer representatives, and relevant institutions to ensure that cotton revival policies translate into tangible results rather than remaining confined to paper. Copyright Business Recorder, 2025
