Finance Act 2026 also grants sales tax relief on specified maritime vessels and equipment to support shipping and logistics
ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a sales tax exemption on the import of bulletproof vehicles for specified government purposes under the Finance Act, 2026, providing tax relief for security-related imports and selected maritime vessels.
The exemption has been incorporated into the Sales Tax Act, 1990 and applies to bulletproof vehicles imported by the federal or provincial governments for the protection of public officeholders facing terrorism-related threats.
Under the amended law, the concession will be available only where the security threat has been assessed by the Ministry of Interior and Narcotics Control, and the import has received prior approval from the federal government.
The Finance Act also extends the exemption to bulletproof vehicles imported by the federal government for logistical arrangements relating to the Shanghai Cooperation Organization (SCO) Summit.
In such cases, imports must obtain prior approval from both the Ministry of Foreign Affairs and the Ministry of Interior and Narcotics Control before qualifying for the sales tax exemption.
Sales tax relief for maritime sector
In addition to the security-related measures, the Finance Act, 2026 provides sales tax exemptions on the import of several categories of maritime vessels and equipment to support Pakistan’s shipping and maritime industries.
The exemption applies to the import of:
• Tankers;
• Dredgers;
• Floating or submersible drilling or production platforms;
• Other floating structures and vessels; and
• Cargo vessels used for the transportation of goods, excluding cruise ships, excursion boats, similar passenger vessels and ferry boats.
According to the amended law, the quantity of vessels and related equipment eligible for the exemption must be approved by the Ministry of Maritime Affairs.
The latest tax measures form part of the government’s broader fiscal reforms under the Finance Act, 2026, aimed at facilitating government security operations, supporting international diplomatic engagements and promoting investment in Pakistan’s maritime and shipping sectors through targeted tax incentives.