Updated after Tax Laws (Amendment) Act, 2024 and Finance Act 2025
The Federal Government introduced certain changes in GST exemptions through the Tax Laws (Amendment) Act, 2024 and the Finance Act 2025. This article covers only the amendments made in Table 1 and Table 2 of the Sixth Schedule to the Sales Tax Act, 1990 that became applicable during FY 2025-26.
Important Note
The content of this blog is applicable for only FY 2025-26. We are retaining it for just historical referencing.
We also published a dedicated blog on the current GST exempted goods and supplies in Pakistan. It covers all the exemption in details.
New exemptions of local supplies and imports for FY 2025-26
The following exemptions became available during FY 2025-26:
Import and Supply of Photovoltaic Cells
Photovoltaic cells, whether assembled in modules or made up into panels, were exempted from sales tax. This exemption provided relief to the solar energy sector and reduced the tax burden on solar installations.
Goods Imported by Hospitals Run by Non-Profit Institutions
The import of goods by hospitals operated by non-profit institutions remained exempt subject to prescribed conditions. This exemption was brought into the Sixth Schedule through the recent amendments.
Supplies Made to Charitable Hospitals
Goods supplied to charitable hospitals having fifty beds or more were exempted from sales tax, excluding electricity and natural gas.
Further Extension in GST Exemptions
The following exemptions were extended further:
Electrical Vehicle Manufacturing
The exemption on import of CKD kits by local manufacturers of:
- Road tractors
- Electric buses
- Three-wheeler electric rickshaws
- Three-wheeler electric loaders
- Electric trucks
- Electric motorcycles
continued during FY 2025-26.
CKD Kits for Electric Vehicles (4-Wheelers)
The exemption on import of CKD kits by local manufacturers of:
- Small cars and SUVs with battery capacity up to 50 KWh; and
- Light commercial vehicles with battery capacity up to 150 KWh
remained available up to 30 June 2026.
Tribal Areas Exemptions
The exemption available on import and supply of specified machinery, plant, equipment and industrial inputs for qualified industries located in the merged tribal districts continued during FY 2025-26.
Supply of Electricity in Tribal Areas
The supply of electricity to eligible consumers and industries located in tribal areas remained exempt during FY 2025-26 under the Sixth Schedule.
GST Exemptions Added Through the Tax Laws (Amendment) Act, 2024
The Tax Laws (Amendment) Act, 2024 also introduced or retained exemptions relating to:
- Goods imported by various agencies of the United Nations.
- Goods imported by diplomats, diplomatic missions and privileged organizations.
- Goods imported under the Export Facilitation Scheme, 2021.
- Machinery, equipment and raw materials imported into Special Technology Zones by eligible persons.
No Major Changes in Table 2
Unlike earlier years, there were no significant additions to the list of exempt local supplies under Table 2 of the Sixth Schedule of the Sales Tax Act 1990 during FY 2025-26 apart from exemptions already incorporated through the amendment process. Most local supply exemptions remained unchanged.
Disclaimer
The content of this blog is only for informational purposes. For making any decision, readers should refer to the original text of the Sales Tax Act, 1990 and consult a qualified accountant or tax consultant. ConSerIC Accountants is not responsible for any decision taken on the basis of this article.
Legal References
- Tax Laws (Amendment) Act, 2024
- Finance Act 2025
- Sales Tax Act, 1990 (Updated up to 30 June 2025
- Relevant SROs and notifications
