The National Assembly has approved Budget 2026-27, with the Finance Bill outlining revised duties on imported vehicles, stricter Federal Board of Revenue (FBR) compliance rules and electronic filing requirements.

According to the Finance Bill 2026-27, from July 1, imported vehicles from 2,000cc to 3,000cc will face 86% duty, while 3,001cc imported vehicles will be subject to 92% duty.

Duties and taxes on 1,800cc vehicles will be reduced from 156% to 74%, while the duty rate on vehicles above 1,500cc is being cut from 91% to 57%.

The Finance Bill says duties and taxes on imported vehicles from 1,000cc to 1,500cc will be reduced from 76% to 52%. Duty on 850cc imported vehicles will be brought down from 66% to 42%.

Under the new auto policy, special excise duty will not be imposed on vehicles up to 1,800cc.

The bill also proposes customs duty of 30% to 40% on the import of large electric vehicles. From July 1, imported EVs valued up to $75,000 will face 30% duty, while EVs valued above $110,000 will be subject to 40% customs duty.

A concessional sales tax of 10% will be imposed on children’s pencils, pens and sharpeners.

From July 1, a one-time fixed tax of Rs10,000 will be imposed in the federal jurisdiction on vehicles up to 1,000cc. Token tax on pre-2010 models of vehicles up to 1,000cc will be Rs20,000.

Vehicles from 1,001cc to 1,300cc will face a token tax equal to 0.3% of the total invoice value. The Finance Bill also says the token tax in the federal jurisdiction will be set at 0.25% of the total invoice value.

Separately, a token tax of Rs2,500 will apply to pre-2010 model vehicles, while Rs6,200 token tax will be imposed on post-2010 model vehicles. The bill says post-2010 vehicles were earlier subject to Rs1,500 token tax.

Amendments to Section 182 of the Income Tax Ordinance, 2001, have also been approved. The Finance Bill says either the tax imposed on taxable income or the higher tax from the previous three years will apply.

Laws relating to filers and non-filers will be further tightened, while those failing to comply with FBR notices will face heavy fines. The first violation of an FBR notice will carry a Rs1 million fine, while repeated violations may attract a penalty of up to Rs2 million.

From July 1, action will be taken over failure to install the electronic tax monitoring system. Disrupting the FBR monitoring system or electronic tax system may be punishable by up to five years in prison.