Islamabad, May 26, 2025: The federal government has decided to apply an 18% sales tax on products manufactured in the ex-tribal areas (ex-FATA/PATA) starting from the upcoming federal budget for the fiscal year 2025-26.
As per news sources, removing the sales tax exemption is expected to bring in more than Rs45 billion, additional revenue for the government during FY25-26. This amount could rise further if income tax benefits for these regions are also withdrawn.
The Federal Board of Revenue (FBR) is currently preparing the required legal amendments to comply with court rulings and applicable laws.
READ MORE: FBR has 2 Million New Taxpayers Registered
According to the Finance Act 2024, the exemption for ex-FATA/PATA on goods imports, supplies, and electricity was extended up to June 30, 2025.
READ MORE: FBR Slaps 10% Fee on Afghan-Bound Goods
However, from now on, import exemptions will require submitting a pay order instead of a post-dated cheque. The pay order will be issued after the concerned commissioner receives consumption or installation certificates within six months.
