Customs duty on 850cc to 1800cc vehicles has been reduced by 35 to 50 percent as the new auto policy comes into force tomorrow.
The federal government has issued the gazette notification of the Finance Act 2026-27, after which implementation of the new federal budget for the upcoming fiscal year will begin from tomorrow (July 1).
According to details, all tax measures, duties and financial decisions included in the budget for fiscal year 2026-27 will come into force from July 1.
Customs duty reduction on 850cc to 1800cc vehicles by 35 to 50 percent, will come into effect tomorrow. Under the auto policy, customs duty on auto parts has been reduced by 10 percent, while duty on motorcycles has been cut by 20 percent.
From July 1, 2026, the advance tax rate on property transactions will be revised. A person selling property will pay 2.75 percent advance tax on the total value, while the buyer will also pay 1.25 percent advance tax based on the fair market value of the property.
From tomorrow, banks and the fertiliser sector will face 10 percent tax on income exceeding Rs 150 million. All corporate companies with income above Rs 500 million will be taxed at 8 percent.
A withholding tax of 0.5 percent will also be applied on international transactions made through credit and debit cards.
Additional customs duty on the auto sector, vegetable oil, gold, silver and mobile phones has been reduced by 2 percent. The reduction and elimination of additional customs and regulatory duties is expected to reduce revenue by Rs 47.6 billion, while cuts in regulatory duties may cause a further loss of Rs 65.57 billion.
It is worth noting that the federal budget 2026-27 was first approved by the National Assembly, after which the President signed the Finance Bill.
After presidential approval, the Finance Bill was sent to the Printing Corporation of Pakistan for gazette notification.
With the issuance of the gazette notification, the Finance Act 2026-27 has become law, and implementation of the new budget will begin from July 1.
PSX rebounds in midday trade as KSE-100 jumps over 1,600 points
