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Tag: FBR

FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.

  • FBR invites sales tax proposals for budget 2021/2022

    FBR invites sales tax proposals for budget 2021/2022

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday invited sales tax proposals for the federal budget 2021/2022 and directed the stakeholders to submit their suggestions by March 10, 2021.

    In a letter sent to chambers, association and other stakeholders, the FBR advised that the proposals should focus on broadening of the tax base and increase in revenue.

    The businessmen have been advised to give proposals to amend in following laws/rules:

    Sales Tax Act, 1990

    Federal Excise Act, 2005

    Sales Tax Rules, 2006

    Federal Excise Rules, 20052

    ICT (Sales Tax on Services) Ordinance, 2001.

    The FBR said that amendments should be suggested with a view to achieve simplification, remove difficulties and anomalies, and to abolish any outdated/obsolete provisions.

    “FBR would welcome proposals for eliminating tax fraud, fake and flying invoices, plugging loopholes if any, facilitating genuine taxpayers and making the procedures transparent,” it added.

    The proposals should be made keeping in view the consequences for the other related trade groups which might be adversely affected by the proposed measure.

  • FBR exempts sales tax, VAT on sugar import

    FBR exempts sales tax, VAT on sugar import

    ISLAMABAD: The Federal Board of Revenue (FBR) has announced an exemption on sales tax and value-added tax (VAT) for the import of 500,000 metric tons of white sugar, aiming to stabilize market prices and provide relief to consumers.

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  • Income Tax Ordinance defines Greenfield industry

    Income Tax Ordinance defines Greenfield industry

    Income Tax Ordinance, 2001 had defined Greenfield industrial undertaking for the purpose of granting exemption and concession.

    The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR) explained Greenfield industrial undertaking as –

    (a) a new industrial undertaking which is –

    (i) setup on land which has not previously been utilized for any commercial, industrial or manufacturing activity and is free from constraints imposed by any prior work;

    (ii) built without demolishing, revamping, renovating, upgrading, remodeling or modifying any existing structure, facility or plant;

    (iii) not formed by the splitting up or reconstitution of an undertaking already in existence or by transfer of machinery, plant or building from an undertaking established in Pakistan prior to commencement of the new business and is not part of an expansion project;

    (iv) using any process or technology that has not earlier been used in Pakistan and is so approved by the Engineering Development Board; and

    (b) is approved by the Commissioner on an application made in the prescribed form and manner, accompanied by the prescribed documents and, such other documents as may be required by the Commissioner:

    Provided that this definition shall be applicable from the 1st July, 2019 and onwards.

  • ITO explains approved funds

    ITO explains approved funds

    Income Tax Ordinance (ITO), 2001 has defined various approved funds for the chargeability of income tax.

    The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR) explained the following:

    “Approved gratuity fund” means a gratuity fund approved by the Commissioner in accordance with Part III of the Sixth Schedule;

     “Approved Annuity Plan” means an Annuity Plan approved by Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension System Rules, 2005 and offered by a Life Insurance Company registered with the SECP under Insurance Ordinance, 2000 (XXXIX of 2000);

    “Approved Income Payment Plan” means an Income Payment Plan approved by Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension System Rules, 2005 and offered by a Pension Fund Manager registered with the SECP under Voluntary Pension System Rules, 2005;

    “Approved Pension Fund” means Pension Fund approved by Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension System Rules, 2005, and managed by a Pension Fund Manager registered with the SECP under Voluntary Pension System Rules, 2005;

    “Approved Employment Pension or Annuity Scheme” means any employment related retirement scheme approved under this Ordinance, which makes periodical payment to a beneficiary i.e. pension or annuity such as approved superannuation fund, public sector pension scheme and Employees Old-Age Benefit Scheme;

    “Approved Occupational Savings Scheme” means any approved gratuity fund or recognized provident fund;

    “Approved superannuation fund” means a superannuation fund, or any part of a superannuation fund, approved by the Commissioner in accordance with Part II of the Sixth Schedule.

  • FBR delegates powers, functions to Members

    FBR delegates powers, functions to Members

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday delegated its powers and functions to the Members under tax laws including income tax, sales tax and federal excise.

    The FBR said that in exercise of powers conferred by Section 8 of the Federal Board of Revenue Act, 2001, the Board-in-Council in its 10th meeting held on December 10, 2020 has rescinded notification No. 6(69)S(BIC)/2019 dated February 24, 2020 for recalling and incorporating the provisions related to delegation of powers/functions under various fiscal statutes into this notification for purpose of consolidation and to further delegate to the Members the powers and functions administered by the FBR conferred on Board through FED Act, 2005, Sales Tax Act, 1990 and Income Tax Ordinance, 2001 but still un-delegated;-

    DELEGATION OF POWERS TO MEMBERS’, FBR

    Member (Inland Revenue-Policy)

    1. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Sections 2(20), 2(23a), 3(3), 4(1), 4(2), 4(5), 4(8), 5(2), 5(3), 6(2A), 6(2AB), 6(3), 7(1), 7(2), 12(4), 1st and 2nd proviso 12(4),12(5),16(4), 17(1)(g), 17(2) in consultation with

    Member (IT), 18(3), 18(4), 18(5), 19A(1), 36 in respect of his order, 38(12) to the extent of rule making, 400), 40(2), 42C with approval of Chairman,42(D),46(7) in consultation with Member (Audit), S.No.55D of the Table I of First Schedule and S. NO.13 and 22(f) of Table I of Third Schedule.

    2. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    Sections 2(9A), proviso to section 2(33),2(43), 2(43A)(f), 2(46)(g),2(46)(J), 1st & 2nd provisos to 2(46), 3(1B),3(3A),3(6),3(7), 3(8),151 proviso to 3(9A) to the extent of rule making, rd proviso to 3(9A) in consultation with Member (IT) for rule making 7(3),7(5), 8(2),8(6), 8B(2)(ii), 8B(4),8B proviso, 9, 10(1), 11(6),13(6), 14,21(2), 22(1)(f), 22(2), 23(1), 23(3), 23(4),25(2A),26(1) 1″ and 2nd proviso, 26(5),33A(1),38(4),47A(12), 50(1),50B(4) in consultation with Member (IT),55, 61,61A, 63,67A(10), 67A(12),71, 72C to the extent of rule making with approval of Chairman, 72D(2),proviso (d) to 73(4), 76, S.No. 12th of fifth Schedule and clause 48 of 6th Schedule.

    3. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Sections 2(19D), 2(19E),2(29C)(aa),2(29C)(b), 2(30A), 2(35AA), 2(36)(c),4B(6), 7C(3), 7D(3),13(3),13(12),21(d),21(p),21(q),24(11),27(c), 28(3) to the extent of formulating criteria of approval of leasing companies etc.,32(3),46(d), 59AA(6), 59B(2)(h),61(5), 67(2), 68(4),74(2A), 76(11), 77(6), 100B(2)(e), 100D(3)(e)(ii)(B), 101A, 105(3)(d), 108(3),108A(2) 108B(1),111(5) ,114(2),114(2A) in consultation with Member(IT), 115(4),116(1),116A(1), 118(1),118(2A), 122D(7), 127(3), 131(2), 134A(12),134A(13) ,138(4), 146B(1),146B(2), 147(7A), 148(1), 148(2), 148(2A), 154(3), 155(3)(vii),158(c), 159(6),160,164(1),165(1), 165(1A), 165(3)for making/ amendment of rules, 165(5), 165(6),165A(1) for making/amendment of rules 165B(1) for making making/amendment of rules, 170(2),170(6),174(1), 174(5), 175(9),175A related to rule making, 177(2A), 177(2AA), 177(17),181, 181A(2), 181D, 183,206, 206A, 213„217 to the extent of rule making, 218(1)(d),218(2)(d), 223(10), 223(11), 227A to the extent of rule making with approval of Chairman, 227B(2),227D, 230F(3), 230F(6), 230F(9), 230F(14), 236B(2A), 236L(3),237(1), proviso in division VII of Part I of First Schedule, Clause 12 of Part 1 of 2″ Schedule, Clause 13(iii) of Part 1 of 2nnt Schedule, clause (53A) of Part I of Second Schedule, Clause 12D & 12E of Part-IV of the Second Schedule and clause (60B) and (72B) of Part IV of Second Schedule,

    4. Exercise powers and perform functions of the Board under following provisions of Income Tax Rules, 2002;

    Rules 19A, 19B, 19C, 19D, 19E, 19F and 231A.

    5. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules, 2005;

    Rules 31(2), 32(2), 33(1), 33(2), 33(3), 40(7), 41A(15), 43(6) and 79.

    6. Exercise powers and perform functions of the Board under the following provisions of Sales Tai Rules, 2005;

    Rules 18 and 150

    Member (Inland Revenue-Operations)

    1. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Sections 2(8a),12(4),16(3), 16(5), 21(4), 22(1),23(1), 29(1AA), 29(3), 30(2), 350), 36, in respect of his order, 38 for implementation and operational purpose, 42D,43, 45(2),45(3),45A,46(1) and 49.

    2. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    Sections 2(5AA)(f), 2(9), 2(15), proviso to 2(27),6(2), 6(3),7(2)(i) 8(1)(1),8A,10(3), 210), 21(4), 22(1A), 260), 27(a), 30(2A),31, 320)(a) & (b), 32(1)(c) & (d), 34A,37A, 37B(13), 37 I, 380), 38B(3),40B, 40C, 45A,47A(2) ,47A(3), 47A(7), 47A(8),48(1A),56AB,56AB(1)(0,56AB(2),56C,62, 67A(2), 67A(9), 72C for implementation and operational purpose, 72D(1) and 74.

    3. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Sections 2(38A),26(2), 28(3) to the extent of granting approvals in the light of criteria of leasing companies, etc 74(11), 80(2)(b)(vi),107(1A), 108A(5),134A(1)(c),134A(2), 134A(3), 134A(4), 134A(7),I34A(8),134A(9), 165(3), 165A(2),171A(2), 171A(9), 171A(10), 175(9),175A(1),180, 181A, 202, 2090) except for CIR (A), first proviso to section 209(2), 209(3), 211(3), 212 to the extent of powers conferred on him by this distribution/delegation powers order, 214A except for appellate body, 214B(1),217(1) in consultation with Member (IT), 223(8), to 227(A)(1) for implementation and operational purpose, 227B(1) and 230F(11)

    4. Exercise powers and perform functions of the Board under the following provisions of Income Tax Rules, 2002,

    Rules 90, 94, 109, 220B and 231C

    5. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules, 2005;

    Rules 2(b), 2(g), 3(5), 5(1),5(4), 25, 26, 28, 31(1), 33(4) in consultation with Member (IR-Policy), 36(4), 40A(3), 41A(2), 53, 54, 55, 56, 57, 58, 64, 74(3), 76, 77 and 78:

    6. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Rules, 2006;

    Rules 5,6, 10, 12, 27, 28, 30, 41,44, 52, 62, 64, 65, 66, 67, 68, 69 and 150F.

    Member (Legal)

    1. Exercise powers and functions under the following provisions of Customs Act, 1969;

    Sections 185G (2) and 193 A (3) [1st Proviso]

    2. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    45A (to the extent of orders by CIR(A) and 74 to the extent of granting condonation to CIR(A) in respect of appellate matters.

    3. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Sections 209(1) to the extent of CIR (A), 214A in respect of orders by CIR (A) and 223(7).

    4. Exercise powers and functions under the following provisions of Federal Excise Act, 2005;

    Sections 35(1) and 43 – to the extent of appellate orders.

    Member (Administration)

    1. Exercise powers and perform functions of the Board under the following provisions of Customs Act, 1969;

    Sections 3, 3A, 3AA, 3B, 3BB, 3C, 3CC, 3D, 3DD and 3DDD (all with the with approval of Chairman)

    2. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Section 2(12),19A(2), 22(13) in consultation with Member (Ops), 29(1) with approval of Chairman 29(2)(a),29(2)(b) 29(2)(C), 38(11) and 41(3) in consultation with Member (Ops).

    3. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    Section 2(2), 30 with approval of Chairman 30A(1),30A(2)(a), 30A(2)(b), 30B,30C,30D,30DD,30DDD,30E,33A(2), 47A(11) and 51(3) .

    4. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Sections 134(A)(11), 2080) with approval of Chairman, 208(2), 216(8), 216A(2), 227(2), 228(1), 228(2), 229(1),229(2), 2300), 230(2), 230A(1), 230A(2), 230B(1), 230B(2), 230C(1), 230C(2), 230D(1), 230D(2), 230E(1 ), 230E(2), 230F(1)230F(2)230G(1), 230G(2),230H(1) and 230H(2).

    Member (Fate)

    1. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    56C

    2. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    181B and 216(5)

    3. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Section 36 in respect of his order

    Member (HRM)

    1. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    30A(2)(a)

    2. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Section 29(2) to the extent of job description and 36 in respect of his order

    Member (Taxpayers Audit)

    1. Exercise powers and perform functions of the Board under the following provisions of Sales Tax, 1990;

    Section 32A and 72B to the extent of actual selection on the basis of criteria approved by Board-In Council

    2. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001.

    Sections 177(8), 177(11) and 214C to the extent of actual selection on the basis of criteria approved by Board-in-Council.

    3. Exercise powers and perform functions of the Board under the following provisions of Federal Excise, 2005.

    Sections 36 in respect of his orders, 42B(1A), 43B(1) to the extent of actual selection on the basis of criteria approved by Board-in-Council and 46(4)

    Member (Information Technology)

    1. Exercise powers and perform Junctions of the Board under the following provisions of Sales Tax Act, 1990;

    Sections 2(5AAA) in consultation with Member (IR-Operations), 3(9A) to the extent of integration of retail outlet with Board computerize system, 21A to the extent of maintenance of active taxpayer list, 22(2A) in consultation with Member (IR-Operations), 22(3) in consultation with Member (IR- Operations), 26(1) 3rd Proviso in – consultation with Member (IR-Operations), 50A in consultation with Member (IR-Operations), 50B(1), 50B(3), 52A in consultation with (IR-Operation) and 72B(1A) to the extent of implementation of computer system.

    2. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Section 216(6A), 216(6C) and 237A in consultation with Member (IR-Operations).

    3. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Sections 4(6) in consultation with Member (IR-Operations) and 17(2)(b) in consultation with Member (IR-Operations) and section 36 in respect of his orders.

    4. Exercise powers and perform, functions of the Board under the following provisions of Income Tax Rules, 2002;

    Rules 73(2), 73(6) and 229.

    5. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules, 2005;

    The electronic Filing of Federal Excise Rules, 2005.

    6. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Rules, 2006,

    Rules 150B, 150D, 1501, 150J, 150K, 150L and 150 0

    The FBR said that without prejudice to the above delegation of powers to the respective Members, if any Member of the Board or the Board itself considers that any matter relating to exercise of statutory power is of material significance, the Board or the Member may refer such matter to the Board-in-Council for a collective decision by the Board in Council.

  • FBR transfers BS-19 IRS officers

    FBR transfers BS-19 IRS officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified transfers and postings of BS-19 officers of Inland Revenue Service (IRS) with immediate effect and until further orders.

    Following are the list of officers who are transferred:

    01.  Fazal-e-Subhan (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue (OPS) (Zone-II) Regional Tax Office, Abbottabad from the post of Additional Commissioner, Regional Tax Office II, Karachi.

    02. Naib Ali Pathan (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue(OPS) (Audit-II) Large Taxpayers Office, Multan from the post of Additional Commissioner, Large Taxpayers Office, Karachi

    03. Rana Waqar Ali (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue(OPS) (Legal) Large Taxpayers Office, Multan from the post of Additional Commissioner, Medium Taxpayers office, Karachi.

    04. Ms. Rizwana Qazi (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner InlandRevenue Corporate Tax Office,Islamabad from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    05. Anwar Zeb (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner InlandRevenue Corporate Tax Office,Islamabad from the post of Additional Commissioner, Regional Tax Office, Rawalpindi.

    06. Muhammad Waqas Hanif (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Corporate Tax Office, Islamabad from the post of Secretary, (FATF Cell) Federal Board of Revenue (Hq), Islamabad.

    07. Mohammad Iqbal Khan (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Corporate Tax Office, Islamabad from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    08. Bilal Ahmed (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office, Multan from the post of Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Faisalabad.

    The FBR said that tThe Officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • People urged to use CNICs for heavy amount transactions

    People urged to use CNICs for heavy amount transactions

    ISLAMABAD: Special Assistant to Prime Minister on Revenue Dr. Waqar Masood on Wednesday urged people to use their Computerized National Identity Cards (CNICs) at the time of making heavy amount transactions.

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  • 43 IR officers promoted to BS-18

    43 IR officers promoted to BS-18

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday promoted 43 officers of Inland Revenue Service (IRS) from BS-17 to BS-18 on regular basis.

    The notified promotion will take with immediate effect. Following are the officers who are promoted to BS-18:

    1. Azzam-ul-Asad Mazhar

    2. Hayat Omer Malik

    3. Ms. Tooba Ahmed Khan

    4. Ms. Saman Zahra

    5. Ahmad Faiz

    6. Ms. Mehak Fatima

    7. Ms. Fatima Anjum

    8. Ray Muhammad Najam Nawaz Saqib

    9. Ms. Shahida Nazeer

    10. Muhammad Naeem Orakzai

    11. Ms. Rafia Nawaz Ranjha

    12. Usama Amin

    13. Ms. Haneen Saif

    14. Ms. Maheen Ali

    15. Ms. Rabia Haider Bokhari

    16. Kamran Hussain

    17. Sohail Anjum

    18. Syed Shah Faisal

    19. Ms. Farah Khan

    20. Najam-ul-Hassan

    21. Ms. Sania Makhdoom

    22. Umair Malik

    23. Khan Muhammad

    24. Muhammad Yousaf

    25. Ms. Samayya Qayyum

    26. Ms. Amna Sharif

    27. Arsalan Ali

    28. Abdullah Zulfiqar

    29. Muhammad Junaid

    30. Malik Khan

    31. Ms. Sanam Rasool

    32. Usman Asif

    33. Rizwan Manzoor

    34. Abdur Rehman

    35. Ms. Aqsa Ali

    36. Ms. Anoshe Fakhruddin

    37. Razi Ul Haq Qureshi

    38. Ms. Aqsa Gharshin

    39. Muhammad Anique uz Zaman Khan

    40. Arshad Ali Nadeem

    41. Malik Ghulam Abbas

    42. Muhammad Usman Rashid

    43. Ghulam Nabi Shaikh

    The FBR said that the promoted officers would actualize their regular promotion to BS-18 at their present places of posting.

    The officers at Sr. Nos. 19, 26 & 33 will actualize their promotion to BS-18 from the date they will return from study leave / deputation and join FBR (Hq), Islamabad.

    The officers who are drawing performance allowance will continue to draw the same after promotion.

  • FBR notifies transfers of BS-20 IRS officers

    FBR notifies transfers of BS-20 IRS officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday notified transfers and postings of senior officers of Inland Revenue Service (IRS) in BS-20 with immediate effect and until further orders.

    The FBR notified transfers and postings of following IRS officers:

    01. Ms. Shazia Memon (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Admin Pool) Federal Board of Revenue (Hq), Islamabad (stationed at Karachi) from the post of  Commissioner, (Zone-V /Withholding Tax) Regional Tax Office I, Karachi.

    02. Kazi Afzal (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-III) Regional Tax Office I, Karachi from the post of Commissioner, (Legal) Medium Taxpayers office, Karachi.

    03. Muhammad Ejaz Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Legal) Medium Taxpayers office, Karachi from the post of Director, Directorate of Law, Karachi.

    04. Muhammad Asghar Khan Niazi (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Admin Pool) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (Bahawalpur Zone) Regional Tax Office, Bahawalpur.

    05. Abdul Hameed Anjum Arayn (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-V / Withholding Tax) Regional Tax Office I, Karachi from the post of Commissioner, (Zone-III) Regional Tax Office I, Karachi.

    06. Ms. Uzma Saqib (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Regional Tax Office II, Karachi from the post of Commissioner, (Enforcement-I) Corporate Tax Office, Karachi.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • 4×4 electric motor vehicles allowed duty, tax concessions

    4×4 electric motor vehicles allowed duty, tax concessions

    ISLAMABAD: The recently promulgated Tax Laws (Amendment) Ordinance, 2021 has granted concessions to 4×4 electric motor vehicles on import of units in both Completely Built Up (CBU) and Completely Knocked Down (CKD) conditions.

    The federal cabinet recently allowed duty and tax concessions to 4×4 electric vehicles. Earlier the concession was available to two-wheelers and three-wheelers electric vehicles.

    The concessions have been allowed to import of 4×4 electric motor vehicles from customs duty, sales tax and income tax.

    (a) Following are the categories of 4 wheelers electric vehicles imported in CBUs for which concessional rates have been allowed.

    — 25 percent customs duty allowed on imports under Pakistan Customs Tariff (PCT) 8703.8090. The concession is allowed till June 30, 2026.

    — Import of 4×4 electric motor vehicles imported under PCT 8703.8090 with condition that the concession shall be admissible till June 30, 2026 on import of electric vehicles 4 wheelers (CBU) per company of the same variant to be assembled or manufactured to the extent of 100 units per company, duly approved / certified by Engineering Development Board (EDB).

    The EBD shall monitor compliance with EV Policy 2020 and intimate FBR immediately in case of violation by any manufacturer to stop further clearance at concessional rates.

    Following are the categories of 4 wheelers electric vehicles imported in CKDs and specific parts for which concessional rates have been allowed:

    Description of Vehicle & PCTDescription of Imported goodsRate of Customs DutyConditions
    Electric Vehicles 4 wheelers (PCT Code 703.8090)(i) EV Specific components for assembly / manufacturer in any kit-form (CKD)1% (notwithstanding the rate of customs duty on these items as specified in the First Schedule to the Customs Act, 1969).The concession shall be admissible to manufacturers of electric vehicles 4-wheelers till 30th June 2026, subject to certification and quota determination by the EDB.
     (ii) Components for assembly / manufacture in any kit-form Non-Localized parts.10%The concession shall be admissible till 30th June 2026 subject to the conditions mentioned in para 2 of the SRO.656(I)/2006 dated June 22, 2006.
     (iii) Components for assembly / manufacture in any kit-form Localized parts.25%The concession shall be admissible till 30th June 2026 subject to the conditions mentioned in para 2 of the SRO.656(I)/2006 dated June 22, 2006.

    In addition to the above, concession on import of CBU chargers with CKD kits for electric vehicles have been extended to 4 wheelers which was previously available for 2 and 3 wheelers.

    In sales tax, (a) Local manufacturers / assemblers importing and supplying the electric vehicle of prescribed categories have been allowed exemptions and reduce rates of sales tax which have been tabulated below:

    Import of CKD kits for the following electric vehicles (4 wheelers) by local manufacturers till June 30, 2026:

    (a) Small cars and SUVs with 50 kwh battery or below; and

    (b) Light Commercial Vehicles (LCVs) with 150 kwh battery or below

    Following locally manufactured or assembled electric vehicles

    (4 wheelers) are subject to one percent of sales tax till June 30, 2026:

    (a) Small cars and SUVs with 50 kwh battery or below; and

    (b) Light Commercial Vehicles (LCVs) with 150 kwh battery or below

    Import of CKD, SUVs and LCVs have also been incentivized by excluding from the ambit of Minimum Value Addition (MVAT) at the time of import.

    For that purpose, following classes of vehicles have been added in the exclusion section of

    12th Schedule to the Sales Tax Act, 1990:

    – Electric vehicles (4 wheelers) CKD kits for small cars or SUVs, with 50 kwh battery or below and Light Commercial Vehicles (LCVs) with 150 kwh battery or below till the 30th day of June 2026.

    – Electric vehicles (4 wheelers) small cars or SUVs, with 50 kwh battery or below and Light Commercial Vehicles (LCVs) with 150 kwh battery or below in CBU condition till 30th day of June 2026.

    – Electric vehicles (2-3 wheelers and heavy commercial vehicles) in CBU condition till the 30th say of June 2025.

    FED is levied on locally manufactured / assembled and imported motor cars, SUVs at the rate of 2.5 percent ad Val. However, there were certain exemptions for rikshaws designed for transportation of persons.

    Through the Amendment Ordinance, exemption has also been allowed to 4 wheelers electric vehicles (falling under tariff headings 87.03) up to June 30, 2026.

    The reduced rate of 1 percent would now be applicable on import of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below and LCVs with 150 kwh battery or below.