The revised Finance Bill 2025-26, which includes relaxations on thresholds for banning “ineligible persons” from buying property and vehicles, may face objections from the International Monetary Fund (IMF), according to a news report.
The National Assembly’s Standing Committee on Finance made significant revisions to the bill, marking the first time such changes have occurred during the parliamentary process. The government will need to justify these revisions to demonstrate its commitment to meeting the Rs14.131 trillion revenue target.
The original Finance Bill, which was 355 pages, was reduced to 348 pages in the revised version, which is set to be presented in the National Assembly within 48 hours. The changes, particularly those aimed at generating Rs389 billion in revenue, could raise questions due to softened enforcement measures.
Key changes include a threshold of Rs7 million for vehicle purchases, above which buyers will be considered “ineligible” and required to show their tax returns when purchasing or registering a vehicle. The property registration threshold has been set at Rs100 million based on fair market value.
The revised bill also includes new investment thresholds for securities and mutual funds, with Rs50 million being the limit for new investments in any financial year. For bank accounts, the threshold for annual withdrawals is set at Rs100 million.
The bill introduces provisions for the exchange of tax and banking information for high-risk individuals, and measures for seizing counterfeit goods under certain conditions. It also places responsibility on foreign vendors to collect taxes on online advertisements in Pakistan, with penalties for non-compliance.
The bill further requires social media and online platforms to submit quarterly statements on advertisements relayed in Pakistan, with penalties for failure to file. Payment intermediaries will also face consequences for suspending remittances to foreign advertisers who fail to pay taxes for 120 days.
The government will need to ensure that these revisions do not undermine its ability to generate the targeted revenue.
