ISLAMABAD: Finance Bill 2026 has increased the rate of minimum tax from 0.25 percent to 0.5 percent in case of distributors, dealers, and sub-dealers, wholesalers of packaged goods, fertilisers, locally manufactured mobile phones, sugar and electronics.
Tax experts explained that in the Second Schedule of the Income Tax Ordinance, Part II, many amendments have been proposed through Finance Bill 2026. They included:
(i); Tax under section 153 (1) (b) on terminal operators was 15 percent; now it has been proposed to be at the rate of 12 percent of the gross amount of payment.
(ii); The rate of minimum tax under sub section (1) of Section 113, in case of distributors, dealers, sub-dealers, wholesalers of packaged goods, fertilisers, locally manufactured mobile phones, sugar and electronics has been proposed to be increased from 0.25 percent to 0.5 percent.
(iii); Currently, tax on any payments received by manufacturers of iron or steel products relating to sale of goods manufactured by them is adjustable. The Bill has proposed to make such deduction as minimum tax.
(iv); The exemption from withholding tax under Section 153 on Companies operating Trading Houses has been proposed to be revoked.
(v); The rates of taxes on sale or transfer or purchase of immovable for late filers have been proposed to be omitted.
Copyright Business Recorder, 2026
Comments