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Pakistan Finance Act 2026 Expands Sales Tax, E-Invoicing Enforcement, and EV Relief

  • Pakistan’s Finance Act 2026 expands sales tax on retail prices to more consumer goods, including confectionery, beverages, and household items.
  • Tax authorities can deregister or blacklist businesses that do not comply with mandatory e-invoicing integration.
  • An electronic mechanism is introduced for adjusting debit and credit notes.
  • Penalties for non-compliance are increased.
  • The Act also adds specific sales tax exemptions and extends the 1% reduced sales tax rate for locally assembled electric vehicles.

Source: assets.kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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