Sales Tax Exemptions and EV Relief: Sixth versus Eighth Schedule

Full Article

An electric vehicle is not automatically sales-tax exempt. The enacted 1% entry concerns EV transport buses with at least 25 seats and electric trucks in CBU condition, under the specified tariff headings.

Keep the schedules separate

The 1% EV entry is in the Eighth Schedule. Sixth Schedule amendments separately cover items such as wheat and rice bran, specified books/newsprint, contraceptives and sanitary pads/tampons. Descriptions and tariff codes must both be checked.

Some relief has a later start

The aircraft import-or-lease entry for any airline company registered in Pakistan states an effective date of 1 July 2027. It should not be applied from July 2026 merely because it appears in Finance Act 2026. The PIACL entry has its own conditions.

Conditional industrial imports

Specified refinery machinery and Karachi Shipyard imports have approval and use conditions. A supplier's description “industrial equipment” is not sufficient evidence of exemption.

Import working paper

Record the exact schedule entry, PCT heading, description, importer eligibility, commencement date and required approvals. Calculate customs duty, sales tax and excise independently; relief under one heading does not eliminate all border charges.

Source and scope

Finance Act 2026, official FBR gazette, PDF pages 25-28. Text reviewed on 14 October 2026. This explains the enacted amendment; a notification-dependent procedure must be checked separately before use.