The Federal Board of Revenue (FBR) has notified new procedures to regulate the secure and tracked transportation of plant, machinery, equipment, and industrial inputs destined for industrial units in the tribal areas (erstwhile FATA/PATA). These units benefit from concessionary sales tax rates under the Sales Tax Act 1990, Entry 89 of the Eighth Schedule.
This new Customs General Order CGO-08/2025 follows the procedures outlined in CGO-01/2021, aiming to ensure compliance with tracking and monitoring systems.Â
Previously, the government extended sales tax and income tax concessions to these units through SROs 1212 and 1213 of 2018, later incorporated in the Finance Act 2019. From 2018 to March 2021, these units imported their industrial inputs through Karachi port.
However, after objections from businesses in settled areas, the FBR regulated these imports by requiring clearance through Azakhel Dry Port under a bonded carrier regime.Â
In 2025, the Finance Act introduced a phased 10% sales tax while maintaining the requirement for Azakhel Dry Port clearance. Some units challenged this procedure in the Peshawar High Court, which initially allowed interim clearance through Karachi port without bonded carriers. The court then ruled that a new procedure could be notified by the FBR.
CGO-08/2025 reinstates the regulatory framework, ensuring secure movement of imports to designated tribal area units under the 2023 Tracking and Monitoring of Cargo Rules, with mandatory clearance through Azakhel Dry Port, addressing concerns from competing industries in settled regions.
