ISLAMABAD: The Federal Board of Revenue (FBR) has extended sales tax exemption on import or lease of aircrafts and its parts to all airline companies registered in Pakistan.
According to the FBR’s instructions issued to the field formations on Monday, through addition of S. No. 181A, exemption on import or lease of aircraft and parts thereof has been extended to airline companies registered in Pakistan.
Imports of ships, flying Pakistani flags, were exempt from sales tax until withdrawn in 2021. The exemption on import of ships and import of plant, machinery and other capital assets for ship-building has been restored.
READ MORE: 35 changes made in Finance Bill, 2026: Airlines get sales tax exemption on aircraft import
Currently, club, business and first-class air tickets are chargeable to fixed federal excise duty per ticket at very high rates, which, under certain situations, may even exceed the price of ticket. Excise duties have been rationalised to Rs50,000 for north America, Rs25,000 for Middle East, Rs40,000 for Europe and Rs40,000 for Far East and Australia, FBR added.
Copyright Business Recorder, 2026
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