ISLAMABAD: The government has decided to reduce penalties/prosecution on digital non-compliance and allow individuals to pay heavy taxes on imported mobile phones in installments under amendments in the Finance Bill 2026 to reduce burden on consumers. A number of changes have been made in the Finance Bill 2026 on the recommendations of the National Assembly Standing Committee on Finance. According to a major recommendation of National Assembly Standing Committee on Finance on Monday, an individual liable to pay tax on imported mobile phone device through Device Identification, Registration and Blocking System of Pakistan Telecommunication Authority, may be allowed to pay tax in installments as may be prescribed, subject to the condition that all the instalments shall be paid before the end of the financial year in which the import is made, it added. READ ALSO: NA body told: Many amendments incorporated in Finance Bill Zero percent excise duty has been proposed on Electric cars and electric SUVs, imported in CBU condition having value as determined under section 25 of the Customs Act, 1969, not exceeding USD seventy-five thousand. The excise duty shall not be charged on import or supply of white spirit and solvent oil purchased only for in-house consumption, if importer and recipient of supplies both are holding license (Form-L) issued by the Department of Explosives, Government of Pakistan. Special excise duty of 86 percent would be imported motor cars, SUVs and other motor vehicles, excluding auto rickshaws, principally designed for the transport of persons (other than those of headings 87. 02), electric vehicles (4 wheelers) including station wagons, double cabin (4×4) pickup vehicles and racing cars of cylinder capacity 2000cc and above but not exceeding 3000cc, as per amended Finance Bill 2026. The duty would be 92 percent in case of cylinder capacity exceeding 3000cc. National Assembly Standing Committee on Finance has strongly recommended massive changes in federal tax laws through amended Finance Bill 2026 and recommended to charge sales tax from steel melters, steel-re rollers and composite units on the basis of per unit electricity consumption. The committee finalized its recommendations late Monday night at the Parliament House. The FBR team of members remained in the Parliament House throughout the day to review each and every proposal recommended by the committee. A special meeting on amendments in the Finance Bill 2026 was also held at the Ministry of Finance on Monday. The FBR team attended the said meeting. According to the recommendations of the committee expected to be incorporated in the Finance Bill 2026 revealed that the rate of minimum tax under sub-section (1) of section 113, shall be 0. 5 percent in the case of distributors, dealers, sub-dealers, wholesalers of goods specified subject to the conditions that beneficiaries of reduced rate are appearing on the active taxpayers’ lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001. Under the amended Finance Bill 2026, the Board may prescribe a lower per unit rate or rates of electricity consumption on the basis of input tax paid on imports or other invoices issued through electronic invoicing system digitally issued invoices for compliant and digitally integrated steel melters, re-rollers and composite units to minimize creation of refunds. Under the amended Finance Bill 2026, the manufacturer shall, apart from any other liability that he may incur under the Act, be liable to pay 3 percent value addition tax of imports on an ad valorem basis, along with default surcharge, in case the imported goods are supplied in the same state whether in the same packing, repacked, or in bulk. The rate of minimum value addition tax shall be one percent in the case of import of coal, subject to the conditions that such imported coal is exclusively and directly supplied to Independent Power Producers. The amendments proposed in the income tax law under the Finance Bill 2026 revealed that a person having turnover up to two hundred million rupees may opt out of final tax regime at the time of filing of return for tax year 2027 and onwards. Finance committee has recommended to define ‘economic viability’ which will included an anticipated net loss of business income due to tax burden either directly or indirectly due to non-availability of resources to maintain or increase efficiency of the business as certified by a chartered accountant firm listed as Category A, as per rating issued by the State Bank of Pakistan. Where the income of a limited liability partnership is exempt from tax, any amount received by a member as share from profits earned by such limited liability partnership shall be included in the income of that member, Finance Committee recommended. The revised tax laws under the amended Finance Bill 2026 (finance committee recommendation) revealed that the State Bank of Pakistan may establish, operate and maintain a secure centralized virtual repository of banking data, comprising such information, records, and financial transactions of persons maintained by Scheduled banks on the basis of unique identifiers, as may be prescribed by the Board and collect and provide data and results. The finance committee further recommended the conditions of payment of surcharge shall not apply to an individual who furnishes an undertaking before the Commissioner by declaring that he shall not purchase, acquire, or otherwise obtain ownership or beneficial interest in any property for a period of six months commencing from the date of furnishing such undertaking in such form as may be prescribed. A proposed exemption clause in the Income Tax Ordinance said, “any income derived by a Private Equity and Venture Capital Fund registered under Private Funds Regulations, 2015, if not less than ninety percent of its accounting income of that year, as reduced by accumulated losses and unrealized capital gains, is distributed by the Private Equity and Venture Capital Fund to its unit or certificate holders or shareholders: Provided that this exemption shall not be available if the Private Equity and Venture Capital Fund is established to acquire a public listed company, whose status has not been changed to the private limited company on the acquisition, it added. The provisions of section 4C shall not apply to a person if the export proceeds realized for the tax year represent more than eighty percent of his total turnover for the tax year, proposed amendments in the Finance Bill 2026 added. Copyright Business Recorder, 2026
Mobile phones tax instalments allowed: Govt eases digital compliances
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