Overview
- The National Assembly approved the Finance Bill and Budget 2026-27 on Tuesday, June 23, putting a new five-year auto policy and amended duties into effect from July 1.
- Across-the-board cuts slash combined duties on most passenger cars, for example bringing the rate for up to 1,800cc from about 156% down to 74% and reducing mid-tier bands to roughly 52–57% depending on engine size.
- Lawmakers kept heavy, targeted levies for high-end vehicles by setting special excise duty at 86% for 2,000–3,000cc and 92% above 3,000cc and by imposing value-based customs and federal excise rules on imported electric vehicles.
- The bill also eases the burden on mobile users by allowing taxes on imported phones to be paid in instalments through the PTA device-registration system and by cutting regulatory duty on phones by about 20% for targeted brackets.
- To protect revenue the Finance Bill tightens digital compliance and enforcement—mandatory electronic returns via IRIS, large fines for violating FBR notices and digital production monitoring—and officials say some concessions still need IMF sign-off or offsetting revenue measures.