The federal government has officially notified the Finance Act, 2026 through a gazette notification, bringing the budgetary measures for the 2026-27 fiscal year into effect from July 1.

The new law introduces changes to taxation, customs duties, and other fiscal measures approved under the federal budget.

Among the key changes, revised advance tax rates on property transactions will now apply. Sellers will pay an advance tax of 2.75 percent of the gross sale value, while buyers will be charged 1.25 percent of the property’s fair market value.

The Finance Act also imposes a 10 percent tax on the income of banking companies and fertilizer manufacturers exceeding Rs. 150 million. In addition, companies with annual taxable income above Rs. 500 million will be subject to an 8 percent tax under the revised provisions.

From July 1, a 0.5 percent withholding tax will also be levied on international transactions made through credit and debit cards.

On the customs side, the government has reduced import duties on vehicles with engine capacities between 850cc and 1,800cc by 35 to 50 percent. Customs duties on auto parts have been cut by 10 percent, while duties on motorcycles have been reduced by 20 percent under the revised auto policy.

Additional customs duties on the automobile sector, vegetable oil, gold, silver, and mobile phones have also been lowered by 2 percent.

According to the government, the reduction and abolition of additional customs duties will reduce revenue by Rs. 47.06 billion, while cuts in regulatory duties are expected to lower collections by a further Rs. 65.57 billion.

The Finance Act, 2026, was passed by the National Assembly and received the President’s assent before being published in the official gazette. With the notification now issued, all tax, customs, and fiscal measures announced in the federal budget have formally taken effect from July 1.