President Asif Ali Zardari has granted assent to the Finance Bill, 2026, outlining a federal budget of Rs18.8 trillion for fiscal year 2026-27.
A post on the Presidency’s X account announced that Finance Minister Muhammad Aurangzeb presented this budget in the National Assembly (NA) on June 12, offering relief to high-income earners and businesses by simplifying income tax, sales tax, and customs duties. The bill also promoted documentation and digital compliance.
The NA approved the budget following a walkout by opposition members who made seven amendments; however, these were rejected with majority votes. Some of the proposed changes in the Finance Bill have been implemented, including easing income tax slabs, rationalizing super tax, cutting excise duties, expanding sales tax exemptions for magazines, shipping, and refineries, removing levies on deemed income and the tampon tax.
The budget also includes reduced excise duty rates for international travel, with business class fares to North America now costing Rs50,000, down from Rs350,000. Similarly, fares to the Middle East and Africa have been reduced to Rs25,000, compared to earlier levels of Rs105,000. Business-class travel to Europe is priced at Rs40,000, down from Rs210,000, while domestic fares for Asia are now Rs40,000 instead of the former Rs210,000.
The budget also does away with a proposed 20% Federal Excise Duty on mineral waters and similar drinks. Additionally, it grants tax-free import or lease of aircraft parts to all airlines operating in the country from July 1, 2027, based on their US dollar values for imported electric cars.
Source: Original report
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