Islamabad, December 1, 2025 – The Federal Board of Revenue (FBR) has issued Customs General Order (CGO) No. 08/2025 to ensure the safe and secure transportation of plant, machinery, equipment, and industrial inputs destined for industrial units in the tribal areas (erstwhile FATA/PATA) that benefit from concessionary sales tax rates under entry 89 of the Eighth Schedule to the Sales Tax Act, 1990.
According to the FBR statement released on Monday, this CGO continues the regulatory framework established earlier under CGO-01/2021. Initially, the federal government granted sales tax and income tax concessions to industrial units in the tribal areas through SROs 1212 and 1213 of 2018. These concessions were later incorporated into the law via the Finance Act 2019 under serial 151 of the Sixth Schedule of the Sales Tax Act and Section 159 of the Income Tax Ordinance.
From 2018 to March 2021, units in the erstwhile FATA/PATA imported machinery and industrial inputs primarily through Karachi port. However, following objections from rival industries in settled areas, FBR introduced CGO-01/2021, mandating clearance through Azakhel Dry Port under a bonded carrier system governed by the Tracking and Monitoring of Cargo Rules.
The Finance Act 2025 partially withdrew the exemption, introducing a phased 10% sales tax, while maintaining the requirement for clearance via Azakhel Dry Port. Several industrial units challenged this procedure before the Peshawar High Court, which initially permitted interim clearance through Karachi port without bonded carriers or tracking mechanisms. The Court subsequently allowed FBR to notify a fresh procedure.
Now, under CGO-08/2025, FBR has reinstated a secure, tracked movement framework for concessionary imports to designated tribal area units. The updated procedure ensures compliance with the Tracking and Monitoring of Cargo Rules, 2023, requires clearance through Azakhel Dry Port, and addresses concerns raised by industries in settled regions, thereby maintaining transparency and regulatory oversight of tax-advantaged imports.