The new budget proposes to increase the minimum tax rate on local mobile phones and several sectors
Published 1 hour ago | By Pak24tv
The federal government has proposed to increase the minimum tax rate on distributors, dealers, sub-dealers and wholesalers of locally manufactured mobile phones, packaged goods, fertilizers, sugar and electronics in the upcoming budget for the financial year 2026-27.
Under the Finance Bill 2026:
It is proposed to increase the minimum tax rate on distributors of locally manufactured mobile phones, packaged goods, fertilizers, sugar and electronics, etc. from 0.25% to 0.5%.
It is proposed to reduce the tax rate imposed on terminal operators under section 153(1)(b) from 15% to 12%.
It is proposed to declare the tax deducted from the payments received by manufacturers of iron and steel products on the sale of their manufactured goods as minimum tax.
It is proposed to abolish the exemption of withholding tax under Section 153 for companies operating trading houses.
It is also proposed to abolish the fixed tax rates for late filers on sale, transfer or purchase of immovable property.
All these proposals are part of the Finance Bill 2026.
