Finance Act, 2026 expands the list of exempt goods and imports, including sanitary products, contraceptives, selected vessels and bulletproof vehicles.
ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a range of new sales tax exemptions for FY2026-27 through amendments made to Table I of the Sixth Schedule to the Sales Tax Act, 1990 under the Finance Act, 2026.
According to FBR officials, the new exemptions are intended to provide relief for selected essential goods and strategic imports while supporting specific government initiatives.
New sales tax exemptions
The Finance Act, 2026 grants sales tax exemptions on the following goods and imports:
• Wheat bran and rice bran.
• Contraceptives.
• Female sanitary pads and tampons.
• Import or lease of aircraft and aircraft parts by any airline company registered in Pakistan. This exemption will become effective from July 1, 2027.
• Import of tankers, dredgers, floating or submersible drilling or production platforms, floating structures and vessels, and other vessels for the transportation of goods, excluding cruise ships, excursion boats and similar vessels principally designed for the transport of passengers. The exemption will apply only to quantities approved by the Ministry of Maritime Affairs.
• Import of bulletproof vehicles by the federal government for logistical arrangements relating to the Shanghai Cooperation Organisation (SCO) Summit, subject to prior approval from the Ministry of Foreign Affairs and the Ministry of Interior and Narcotics Control.
• Import of bulletproof vehicles by the federal or provincial governments where a public office-holder faces a terrorism-related threat, as determined by the Ministry of Interior and Narcotics Control and approved by the federal government.
Relief for essential goods and strategic sectors
Officials said the exemptions covering wheat bran, rice bran, contraceptives and female sanitary products are aimed at reducing the tax burden on essential commodities.
The exemption for aircraft imports and leases is expected to support Pakistan’s aviation sector, while the relief for specialised maritime vessels is intended to facilitate shipping, dredging and port development activities.
Meanwhile, the exemption for bulletproof vehicles has been introduced to facilitate security arrangements for international events and to meet official security requirements where credible terrorism threats exist.
Tax experts said the new exemptions reflect the government’s policy of providing targeted tax relief for essential goods and strategically important sectors while balancing broader revenue objectives under the Finance Act, 2026. They added that businesses intending to benefit from these exemptions should ensure compliance with the prescribed approval and documentation requirements set out in the amended law.