Trusted Financial &
Tax Advisory

Saim Shaheryar — Income Tax Practitioner | Member of Rawalpindi Islamabad Tax Bar Association

Issue with IRIS? Email: ITR2026feedback@pral.com.pk

Don't wait — let us prepare and file your return before the deadline!

• Income Tax Return Tax Year 2026 ki filing officially 1 July 2026 se shuru ho chuki hai.
• Tamam salaried individuals, business owners, AOPs aur companies apni return iris.fbr.gov.pk par file kar sakte hain.
• Deadline 30 September 2026 hai — is se pehle return file karna lazmi hai taake late filing penalty se bach sakein.
• Waqt par return file karne se aap FBR ki Active Taxpayers List (ATL) mein automatically shamil ho jate hain.
• Late filing par bhari jurmane aur ATL Restoration Surcharge ka samna karna par sakta hai.

Apni return abhi file karwayein — hum poora process handle karte hain.

• The Finance Bill 2026-27 has been officially passed by the National Assembly after floor debate and amendments.
• Several relief measures were incorporated including reductions in certain duties and exemptions for specific sectors.
• Tax changes affect salaried individuals, businesses, importers, and corporations.
• The bill now proceeds to the Senate and then for Presidential assent to become the Finance Act 2026-27.
• FBR will issue circulars explaining the approved changes once the Act is notified in the official gazette.

Contact us to understand how these changes impact your business or individual taxes.

• 27–28 June (Sat & Sun): All FBR field offices to remain open with normal working hours.
• 29–30 June (Mon & Tue): Extended working hours to facilitate maximum tax collection before fiscal year-end.
• This directive covers all tax facilitation centres, Large Taxpayer Offices (LTOs), Medium Taxpayer Offices (MTOs), and Regional Tax Offices (RTOs).
• Taxpayers are encouraged to utilise this opportunity to clear outstanding payments, file pending returns, and resolve pending issues.
• Online services via IRIS portal will also remain fully operational 24/7.

Need help filing before the deadline? Contact us now for same-day service.

The Finance Bill 2026-27 proposes a significant increase in penalties for late income tax return filing under the Income Tax Ordinance 2001:

Don't wait — file your return now to avoid heavy penalties. We handle everything quickly.

• FBR revenue target for FY 2026-27 has been set at Rs. 15.26 trillion — a substantial rise from the FY 2025-26 target.
• The target reflects the government's drive to expand the tax base and improve compliance across all sectors.
• FBR intends to bring new taxpayers into the net including SIM holders, social media earners, and real estate investors.
• Digital integration, third-party data matching, and automated notices will be used to achieve the target.
• Businesses and individuals are advised to ensure their tax affairs are in order to avoid enforcement actions.

Stay compliant — register your NTN, file returns on time, and maintain filer status.

• A Senate Standing Committee has endorsed a proposal to levy 5% tax on earnings from social media platforms.
• This would affect content creators, influencers, and YouTubers earning monetisation revenue from platforms like YouTube, TikTok, Instagram, and Facebook.
• Income from foreign-sourced platform earnings would be subject to declaration in annual income tax returns.
• FBR is working with PTA and telecom companies to identify high-earning social media accounts.
• Freelancers and social media earners are advised to register their NTN and begin filing returns proactively.

Are you a content creator or influencer? Register your NTN and file returns before enforcement begins.

Key relief proposals included in the Finance Bill 2026-27:

• Foreign Travel FED: Reduction in Federal Excise Duty on international air travel tickets — providing relief to travellers.
• Electric Vehicles: Extension of customs duty and sales tax exemptions for certain categories of electric vehicle imports to boost EV adoption.
• Tampon Tax Abolished: Sales tax on sanitary products (tampons) has been abolished — a welfare measure for women.
• Sales Tax Rationalization: Various sales tax exemptions have been streamlined and rationalized across sectors including food, medicine, and basic commodities.
• SME Relief: Certain concessions proposed for small and medium enterprises to ease their tax compliance burden.

Want to know how these relief measures benefit your business? Contact us for a free consultation.

The Finance Bill 2026 brings significant amendments to Pakistan's tax regime. Here are the key highlights every taxpayer and business owner should know:

• Revised customs duty rates on hundreds of imported goods under the 1st Schedule
• New duty slabs on plastic products, paper, electrical equipment, and industrial machinery
• Electric trucks (CBU) with g.v.w. exceeding and not exceeding 5 tonnes now attract 30% customs duty
• Recycled/regenerated polyester staple fiber reduced to 5% duty — encouraging sustainable manufacturing
• Worn clothing and worn shoes: 5% customs duty applicable
• Submersible pumps (5–10 inch diameter) and agricultural silos set at 0% — relief for agriculture sector
• Deodorized Kerosene Oil: 10% CD; Other petroleum products: 15% CD
• Currency notes, unused stamps, and security threads: 0% duty under PCT 9923
• Bulletproof vehicles for Federal/Provincial security and SCO Summit: 0% duty with NOC
• Fifth Schedule amendments introduce updated exemptions and concessions on specified goods

Contact us for a personalised impact assessment for your business.

Key revised PCT codes and their new Customs Duty rates under the Finance Bill 2026:

• Soybean seeds (1201): 0% — all categories (sowing, oil extraction, other)
• Rape/colza seeds — Low uric acid (1205.10): 5% duty
• Ethyl alcohol denatured (2207.2000): 30% customs duty
• Tobacco — not stemmed, partly stemmed, refuse (2401): 5% duty
• Kerosene Oil (2710.1915): 10%; Other petroleum (2710.1999): 15%
• Plastic products — pipes, films, fittings, closures (Chapter 39): 15% duty
• Shredded tyre scrap (4004.0020): 10%
• Coated/art paper products (Chapter 48): 15% duty
• Recycled polyester staple fiber (5503.2020): 5%
• Worn clothing (6309.1010) and worn shoes (6309.1020): 5%
• Electrical equipment — transformers, switchgear, capacitors (Chapter 85): 15%
• Agricultural tractors exceeding 75kW (8701.94/95): 0% duty
• Electric trucks CBU (8704.60): 30% duty
• Shipping containers (8609.0000): 0%
• Submersible pumps 5–10 inch (8413.7011): 0%
• Grain storage silos with mechanical controls (8479.8960): 0%

Download the full schedule for complete PCT code listings.

The Fifth Schedule provides reduced or zero-rated customs duties for specific categories of imports. The Finance Bill 2026 updates these concessions. Important areas covered include:

• Updated concessionary rates for industrial raw materials and machinery inputs
• Revised exemptions for goods imported under special economic zone (SEZ) provisions
• Changes to duty concessions for the agriculture, energy, and manufacturing sectors
• Amendments to previously granted exemptions for charitable, educational, and government imports
• Adjustments to concessionary rates for IT hardware and telecommunications equipment
• Updated treatment for goods re-imported after processing abroad
• New entries and deletions from the Fifth Schedule based on FBR policy review

Importers should review their product classifications against the updated Fifth Schedule to ensure correct duty application.