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FBR reviews G-B tax exemption

Our Correspondent December 31, 2025 Less than a minute read

At high tax rates, profit margins for sellers decrease, leaving them with options to pass on the burden to consumers, compromise on the quality of products, evade taxes or find cheaper illicit goods. photo: file

ISLAMABAD:

The FBR has taken note of concerns expressed by traders, stakeholders, and trade bodies about the proposed procedure regarding non-levy of federal taxes on goods imported for exclusive consumption in G-B.

The FBR clarified that a comprehensive and robust mechanism has been put in place to ensure that these tax-exempted goods are not misused and do not adversely affect the interests of traders and the business community in the rest of Pakistan, said a release issued on Tuesday.

G-B enjoys a special status, and certain federal tax laws including the Sales Tax Act, 1990, Income Tax Ordinance, 2001 and Federal Excise Act, 2005 have not been extended to the territory.