Motorbike, AC, refrigerator makers to pay 20pc tax on income from FY’26

The income tax on manufacturers of freezers and accessories, refrigerators, air conditioners, motorcycles, and compressors will be increased to 20 per cent from fiscal year 2025-26.

The National Board of Revenue (NBR) issued a notification, signed by its Chairman Abdur Rahman Khan, on Tuesday regarding this matter. The notification will remain in force from July 1, 2025, to June 30, 2032.

Currently, the companies pay a 10 per cent tax on their income.

Besides, the manufacturers also pay a 2 per cent advance income tax (AIT) on the import of machinery, parts, and equipment.

Local news portals said the AIT rate is expected to increase in the coming days.