The federal government will withdraw the 18 percent sales tax exemption on goods manufactured in the former tribal areas starting from the fiscal year 2025-26 and generate over Rs. 45 billion in revenue.
The Federal Board of Revenue (FBR) is currently preparing legal amendments to implement this decision.
Previously, exemptions on the import and supply of goods and electricity in ex-FATA/PATA were extended until June 30, 2025.
Going forward, tax-free import into these regions will only be allowed upon presentation of a pay order.
The pay order will be released once consumption or installation certificates are submitted within six months.