Committee Proposes Mobile Tax Relief, Extends Airline Exemptions in Finance Bill

Updated: 2:49 AM PKT — June 23, 2026

The National Assembly Standing Committee on Finance has finalised its recommendations for the Finance Bill 2026, concluding its clause-by-clause review. The committee proposed extending sales tax exemptions on aircraft leases and spare parts to all airlines, not just PIA, to ensure fair market competition.

During the review, lawmakers also questioned the government’s mobile phone taxation policy. The FBR Chairman stated that mobile phone imports generate Rs 37 billion annually, with Apple devices alone accounting for Rs 21 billion. The committee directed the FBR and PTA to develop a feasible instalment plan for paying mobile phone taxes.

Proposals were also reviewed to rationalise duties on vehicles, with reductions proposed for cars up to 1800cc and customs duty cuts on auto parts. However, members raised concerns about the taxation policy for high-end electric vehicles.

Latest Updates

Updated: 7:22 AM PKT — June 24, 2026

The government has incorporated over 35 changes into the Finance Bill 2026, according to amendments approved on Tuesday.

A key amendment confirms a sales tax exemption on the import or lease of aircraft and their parts for all Pakistani airlines, which will become effective from July 1, 2027. Additionally, some proposed amendments related to the Climate Support Levy have been dropped from the bill.

The amended bill also introduces a new federal excise duty structure for imported electric cars and SUVs, based on their value in US dollars:

0% FED: For vehicles with a value up to $75,000.
30% FED: For vehicles valued between $75,001 and $110,000.
40% FED: For vehicles valued above $110,000.

Another change allows persons with a business turnover of up to Rs. 200 million to opt out of the fixed tax regime for the tax year 2027.

Updated: 12:36 AM PKT — June 24, 2026

In a related development, the auto market in Pakistan has reportedly seen a significant drop in car prices, leading to a record surge in vehicle sales.

Lawmakers have formally proposed the introduction of an instalment-based payment system for the taxes required to register imported mobile phones with the Pakistan Telecommunication Authority (PTA). The suggestion aims to address the large number of devices that remain unregistered due to high upfront costs.

Under the proposal, users could pay the required duties in instalments through the Device Identification, Registration and Blocking System (DIRBS). Currently, the total tax on an imported phone can be as high as 63% of its value.

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