The government of Pakistan has made important changes to the Finance Bill 2025–26 to give relief to long-term homeowners and bring clarity to tax laws.
One major change is that people who have been living in the same house for at least 15 years will no longer have to pay withholding tax on that property. This move is aimed at supporting long-term residents and making home ownership easier.
The bill also introduces stronger legal protection for taxpayers. This comes after the Supreme Court’s ruling in the Taj Company case, which raised concerns about unfair arrests in tax fraud cases. Now, stricter rules will apply to prevent arbitrary arrests during tax investigations.
Another part of the bill relates to electric and hybrid vehicles. The proposed Energy Vehicles Adoption Levy may include an exemption for hybrid cars. However, a final decision will be made after discussions with the International Monetary Fund (IMF).
In addition, the government has made changes to tax-free limits on courier parcels. Earlier, items worth up to Rs 5,000 could be received without paying taxes. Under the new rule, only parcels worth Rs 1,000 or less will be exempt from tax.
These changes are part of the government’s ongoing efforts to balance public relief with revenue needs. While some steps offer clear benefits to ordinary citizens, others tighten rules to improve transparency and compliance in the tax system.
The final version of the bill is expected to be approved soon after necessary consultations.
