Author: Shahnawaz Akhter

Many buyers are unaware that property or goods purchased through auction in Pakistan are subject to income tax. Under Section 236A of the Income Tax Ordinance, 2001, the Federal Board of Revenue (FBR) mandates the collection of advance tax at the time of sale by auction for tax year 2026.

Karachi, January 5, 2026 — The Regional Tax Office (RTO)-II, Karachi, in collaboration with Inland Revenue Intelligence and Investigation (I&I), has confiscated 1,800 bags of sugar after intercepting trucks carrying counterfeit Track and Trace System (TTS) stamps during a major enforcement operation.

The Federal Board of Revenue (FBR) has updated the advance income tax framework on electricity consumption for tax year 2026, affecting industrial, commercial, and certain domestic consumers across Pakistan.

Motor vehicle owners in Pakistan must understand motor vehicle tax and advance tax obligations for tax year 2026 to avoid penalties and compliance issues. The Income Tax Ordinance, 2001, updated for Tax Year 2026, lays down these rules under Section 234, which governs the collection of advance tax along with motor vehicle tax.

What is Advance Tax on Brokerage and Commission? Advance tax on brokerage and commission is a withholding tax deducted at source by the payer (principal) on payments made to the agent.

What is the 0.8% Tax on Cash Withdrawals? If your name is not on the Active Taxpayers’ List (ATL) in Pakistan, Section 231AB of the Income Tax Ordinance, 2001 (updated for 2026) requires banks to deduct 0.8% advance tax on cash withdrawals.