24-06-2025
- Business
- Business Recorder
WHT on sale of 15-year self-owned homes to end from July 1
ISLAMABAD: The amended Finance Bill (2025-26) will abolish the withholding tax on sales of immovable properties, effective from July 1, for properties owned by an individual who has been residing in the residence for personal use for a period of 15 years or more.
The Federal Board of Revenue (FBR) has incorporated this amendment into the Finance Bill (2025-26) on the recommendation of the National Assembly Standing Committee on Finance. The amended Finance Bill (2025-26) has proposed major changes in the federal tax laws from July 1, 2025.
The amended Finance Bill (2025-26) has incorporated all changes recommended by the Senate on placing safeguards before arrest of persons involved in tax fraud.
Withdrawal of 3pc FED on property transfer proposed
The amended Finance Bill (2025-26) has also revised the entire sales tax law in line with the judgement of Supreme Court of Pakistan in case of Taj Company. These changes mainly related to the arrest of persons and registration of FIRs against those involved in tax fraud.
On the recommendation of National Assembly Standing Committee on Finance, the government may abolish new Energy Vehicles Adoption Levy on hybrid vehicles.
Through Finance Bill (2025-26), the government has proposed new Energy Vehicles Adoption Levy Act, 2025. There stand imposed a levy to be collected and paid to the Federal Government by every manufacturer on every internal combustion engine motor vehicle manufactured or, as the case may be, assembled and supplied by him and every person on every internal combustion engine motor vehicle imported by him into Pakistan.
The FBR chairman categorically said that the levy has a revenue impact of Rs10 billion and exclusion of hybrid vehicles needs consultation with the IMF. This revenue measure has been agreed with the IMF.
Naveed Qamar, chairman of the finance committee responded that the FBR has granted exemptions to certain categories of vehicles from this levy. The FBR should also include hybrid vehicles in the said exclusion list.
The amended Finance Bill (2025-26) has also withdrawn a major customs related amendment to disallow duties and taxes free import of small courier and postal parcels/gifts (upto value of Rs5,000) coming through international courier, impacting thousands of parcels per day.
From July 1, 2025, the Customs Department would only allow duties/taxes free import of small gift parcels having values upto Rs1,000.
National Assembly Standing Committee on Finance outrightly rejected the FBR proposal.
According to the FBR chairman, in a bid to plug loopholes in small parcel imports, the de-minimise limit for courier and postal parcels has been reduced to Rs500, curbing misuse. The facility for scrapping and mutilation of goods at ports will now only be allowed for genuine requests and limited to 10 per cent of total cargo.
Additionally, a new clause has been added to prevent belated and frivolous claims of ownership for goods liable to confiscation. FBR Member Customs (Policy) Wajid Ali informed the committee that containers are coming into Pakistan loaded with thousands of small parcels with declared value upto Rs5,000 to misuse of the facility.
We are unable to take any action against small parcels due to existing de-minimise limit of Rs5, deal with the issue of genuine reasons for delay of clearance of imported consignments, the amended Finance Bill (2025-26) may incorporate in Customs Act, 'customs department shall issue regulations to protect interest of importers if circumstances are beyond their control', it added.
In case of unavoidable circumstances, the Collector of Customs can waive penalty, Ali added.
Copyright Business Recorder, 2025
