Are Pesticides really exempt in GST in Pakistan?

I received a query regarding exemption of pesticides from charge of general sales tax. The query was sent by a supplier of pesticides located in a far-off village of Punjab.

In short, local import and local supply of registered pesticides including their registered active ingredients are exempted from charge of general sales tax in Pakistan.

In the coming lines I am breaking down the story of this exemption over the past 2 decades.

Exemption of Pesticides in GST 2026

The Serial 133 of the table 1 of the sixth schedule of the Sales Tax Act 1990 clearly states, “Pesticides and their active ingredients registered by the Department of Plant Protection under the Agricultural Pesticides Ordinance, 1971(II of 1971), stabilizers, emulsifiers and solvents, namely ……. “

From the Finance Act 2016

This serial was inserted in the Sales Tax Act through the Finance Act 2016 and it exists in the today’s Sixth Schedule of the Sales Tax Act. This exemption is applicable and enforceable from 1^st July 2016 till today.

GST on Pesticides – Over the years

On 21^st June 2006, FBR issued an SRO 645(I) / 2006 that levied fixed value addition sales tax of 15% at import stage of finished pesticides and their active ingredients. This SRO also clarified that no further sales tax would be charged in the supply chain of pesticides whether locally manufactured or imported.

Within two years, FBR issued an SRO 536(I) / 2008 (dated: 11^th June 2008) that exempted pesticides and their active ingredients from charge of sales tax at import, local supply and retail sale.

Both of these SROs had a common condition that active ingredients must be registered by the Department of Plant Production (Federal Ministry of Food).

On 15^th March 2011, FBR issued another SRO 229(I) / 2011 and withdrew exemption on import, manufacturing, local supply and retail sale of pesticides including their active ingredients. The enforceability of SRO 536(I) was ended on the same date.

What was before 21 June 2006

Under the SRO 747(I) of 1981, the imported agricultural pesticides and insecticides were exempted from sales tax subject to:

1. Their certification from the Federal Ministry of Food or Provincial Agricultural Department.
2. They were exclusively meant for plant protection.
3. If they were meant for purposes other than plant protection, the taxes were paid by the importer at import stage.  

Where to find registered pesticides

The Department of Plant Protection (Ministry of National Food Security & Research) publishes list of registered pesticides, insecticides and their ingredients on regular basis. You can find visit office or website of the department to get updated list of registered pesticides.

Bonus Content

We have already published a dedicated blog on GST exemption in Pakistan. You can ready the exemptions in details,

References

1. The Finance Act 2016
2. Sales Tax Act 1990 updated up to 30 June 2016
3. Sales Tax Act 1990 updated up to 30 June 2026
4. SRO 747(I)/1981
5. SRO 645(I)/2006
6. SRO 536(I)/2008
7. SRO 229(I)/2011