Finance Bill 2026, part 2

• “(3A) If, at any stage of the proceedings before him, if the Commissioner is of the opinion that having regard to, -

  • (a) the nature and complexity of the accounts; or

  • (b) volume of the accounts; or

  • (c) doubts about the correctness of the accounts; or

  • (d) multiplicity of transactions in the accounts; or

  • (e) specialized nature of business activity of the registered person, and interests of the revenue, is of the opinion that it is necessary so to do, he may, after giving the registered person a reasonable opportunity of being heard, and with the previous approval of the Chief Commissioner, direct the registered person to get either any or all of the following to get the -

    • (i) accounts re-audited by an accountant, and to furnish a report of such audit duly signed and verified by such accountant including answers to the specific queries as the Commissioner may require; and

    • (ii) inventory re-valued by a cost accountant, and to furnish a report of such inventory valuation duly signed and verified by such cost accountant including answers to the specific queries as the Officer of Inland Revenue may require;

Explanation. - The accountant or the cost accountant, as referred to in this sub-section shall be nominated by the Commissioner for the purposes of the said sub-section from amongst the panel of such accountants or cost accountants nominated by the Board.”;

• (14) in the First Schedule,-

  • (1) in Table-1, in column (1),-

    • (a) against S. No. 7a, in column (4), for the words “forty four”, the word “ten” shall be substituted;

    • (b) against S. No. 8a, in column (4), for existing entries, the following shall be substituted, namely:-

“Rupees sixteen thousand five hundred per kg”

• (c) against S. No. 55 and 55B, in column (2), for the expression “2026”, the expression “2027” shall be substituted;

• (d) after S. No. 55, the following new S. No. and entries relating thereto in columns (2), (3) and (4) shall be inserted, namely:-

• (e) against S. No. 59, in column (2), for the words “excluding

mineral and aerated waters”, the expression “excluding mineral waters, aerated waters, hydration drinks or electrolyte beverages specifically formulated to support hydration, electrolytes replenishment not containing sugar exceeding 5g/100 ml or artificial sweetener” shall be substituted;

• (f) for entry 63, and entries relating thereto in columns (2), (3) and (4), following shall be substituted, namely: -

(g) after S. No. 64 and entries relating thereto in columns (2),

(3) and (4), the following new S. No. and entries relating

thereto shall be added, namely:-

• (h) in Table-1, for Restriction-2, the following shall be

substituted, namely:-

“(2) Restriction-2 - Brand variants at different price points.- No manufacturer or importer of cigarette can introduce or sell a new variant of the existing brand at a price lower than the lowest actual price of the existing brand. For the purposes of this restriction, current minimum price of existing brand means the lowest price of an existing brand on the day of announcement of Budget of the current financial year.

Explanation.- For the purpose of this restriction, brand variant means any cigarette brand with identical name, trademark, design, pattern or any unique distinguishing mark associated with an existing brand.”;

• (2) after Table-1 amended as aforesaid, the following new

Table shall be inserted, namely:-

“Table IA

• (3) in Table-II, in column (1), against S. No. 3, in column (2), for sub-

clause (ii) of clause (b) and entries relating thereto in column (4),

• the following shall be substituted, namely: -

<!-- Start of picture text --> “(ii) Club, business and first class
air tickets issued on or after the
1st day of July, 2026:
(a) IATA Traffic Conference Area (a) Fifty thousand rupees
1 (North, Central, South America
and Environs)
(b) IATA Traffic Conference Area
2 (b)(I) Twenty-five thousand
(I) Middle East and Africa rupees
<!-- End of picture text -->

• (15) in the Second Schedule, after the omitted S. No. 4, in column (1) and

  • entries relating thereto in columns (2) and (3), the following new S. No.

shall be inserted, namely:-

• (16) in the Third Schedule, in Table-I, after S. No. 27, in column (1) and

  • entries relating thereto in columns (2) and (3), the following new S. No.

shall be inserted, namely:-

ii) By the Federal Government or Provincial Government for threat of terrorism against a public functionary as determined by the Ministry of Interior and Narcotics Control, subject to approval by the Federal Government”.

8. Amendments of the Finance Act, 2022 (XIII of 2022). - In the Finance Act,

2022 (XIII of 2022), in section 8, -

• (1) in sub-section (2), -

  • (a) in clause (ab), the word “and” at the end shall be omitted;

  • (b) in clause (ac), after the semicolon occurring at the end, the word “and” shall be added; and

  • (c) clause (b) shall be omitted;

• (2) in sub-section (3), -

  • (a) in clause (b), in the proviso, after the semicolon occurring at the end, the word “and” shall be added; and

  • (b) clause (c) shall be omitted;

• (3) in sub-section (4), in clause (g), for the expression “(ab), (ac) and (b)”, the expression, “(ab) and (ac) shall be substituted;

• (4) in sub-section (13), clause (c) shall be omitted; and

• (5) in the First Schedule, in the Table, in column (1), S. No. (4) and entries relating thereto in columns (2) and (3) shall be omitted.

STATEMENT OF OBJECTS AND REASONS

The purpose of this bill is to make financial provisions for the year beginning on the first day of July, 2026 and it shall come into force on the first day of July, 2026

(Senator Muhammad Aurangzeb)

Minister for Finance & Revenue

STATEMENT OF ESTIMATED TAX EXPENDITURE

Section 8 of Public Finance Management Act, 2019 provides that The Federal Government shall, in respect of every financial year cause to be laid down before the National Assembly, Finance Bill consistent with Article 73 of the Constitution including a statement of estimated tax expenditure of the Federal Government.

2. A Tax Expenditure Report 2026 providing the details of tax expenditure in FY 2024-25, which involves tax expenditure in Sales Tax of Rs. 1,273.98 Billion, a tax expenditure in respect of Customs Duty of Rs. 499.14 Billion and tax expenditure in respect of Income Tax of Rs. 579.70 Billion, arriving at a total estimated tax expenditure of Rs. 2,352.81 Billion is being laid before the Parliament.