The amended Finance Bill 2025–26 introduces significant tax relief and structural reforms, notably abolishing the withholding tax on the sale of immovable property used as a personal residence for 15 years or more. This change will take effect from July 1, 2025.

The Federal Board of Revenue (FBR) implemented the change following a recommendation by the National Assembly’s Finance Committee. Additionally, the bill now includes safeguards proposed by the Senate to ensure due process is followed before any arrests are made in tax fraud investigations.

A previously proposed 3% Federal Excise Duty (FED) on property transfers has been withdrawn. However, a new Energy Vehicles Adoption Levy will be imposed on internal combustion engine vehicles. While hybrid vehicles are not currently exempt, the finance committee has called on the FBR to provide them relief. The new levy is projected to generate Rs. 10 billion in revenue.

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Meanwhile, the bill reverses a customs amendment that sought to eliminate tax-free imports of courier parcels worth up to Rs. 5,000. Starting July 1, only gift parcels valued at Rs. 1,000 or less will qualify for exemption. In a separate move, the FBR has lowered the de-minimis threshold for import duty exemption to Rs. 500 in an effort to combat under-invoicing.

The legislation also introduces a clause to prevent false or delayed ownership claims on confiscated goods. New customs regulations will be issued to protect importers who experience delays in clearing shipments due to reasons beyond their control. In such cases, customs collectors may waive penalties after review.