After the approval of the Finance Act 2025, we are publishing this article on the updated list of goods, items and supplies which are exempted from the levy of sales tax.

GST exemptions withdrawn in Finance Act 2025

The sales tax exemption for 2025-26 tax year is same as it was for the tax year 2024-25. However, the finance act has withdrawn following previous exemptions:

1. Supplies to the industries of the Tribal Areas
2. Import of plant and machinery / equipment for the installation in industries located in the Tribal Areas
3. Photovoltaic cells used in the assembly of solar penal

The above (a) and (b) exemptions were available to tribal areas till 30^th June 2025. Now, the Federal Govt did not extend it further.

List of GST exempted supplies 2025-26

The finance act extended GST exemption on supply of electricity to tribal areas till 30^th June 2026. Additionally, below are new exemptions:

1. Import of cystagon, cysta drops and trientine capsules.
2. Import or lease of aircrafts and parts by Pakistan International Airlines

Below is the list of exempted supplies for the tax year of 2026 (from July 2025 to June 2026).

1. Food Items
   • Pulse
   • Rice, wheat, and wheat flour
   • Fruits and vegetables (edible) excluding sold under a brand name / trademark
   • Milk, cream, yogurt, butter, desi ghee, processed cheese, flavored milk and other dairy products (excluding branded)
   • Meat (beef, mutton and chicken) and meat products (excluding branded)
   • Red chilies, ginger, turmeric and spices (excluding branded)
   • Tea (in some cases)
   • Eggs, fish and poultry
   • Bread, nan, chapatis, roti  
   • Fresh fruit juices including fresh and frozen but excluding canned, bottled and carbonated.
2. Religious Materials
   • Holy Quran (printed or digital)
   • Other religious books
3. Educational Materials
   • Newsprint and books (excluding brochures and directories)
   • Exercise books
4. Medical Equipment & Supplies
   • Artificial kidneys, dialysis machines, and related consumables
   • Wheelchairs
   • Glucose testing equipment
   • Cochlear implants
   • Equipment / medicines and items for the cardiac surgeries including angioplasty
   • Intra-ocular lenses
5. Imports for Specific Projects
   • Goods imported under grants-in-aid
   • Goods imported by rulers of Gulf Sheikhdoms for donation
   • Construction materials for Gwadar Export Processing Zone
   • Materials, Plant, Machinery and Equipment imported for the construction, development and operation of Gwadar Port and Free Zone (subject to certain conditions)
6. Miscellaneous
   • Currency notes, bank notes, shares, stocks, and bonds
   • Monetary gold
   • Live animals, live plants and live poultry
   • Dextrose and saline infusion sets
   • Agricultural produce that does not need further processing in industry

Disclaimer

Above list is compiled on the basis of Sixth Schedule of Sales Tax Act, SROs and notification. This is not a professional advice. Before making any decision, it is requested to cross check with law, notifications, SROs etc.

Reference

1. Finance Act 2025
2. Sales Tax Act 1990
3. Relevant SROs and Notifications