The Federal Board of Revenue has issued CGO-08/2025 for ensuring safe and secure
transportation of plant, machinery, equipment and industrial inputs destined for the industrial units located in the tribal areas (erstwhile FATA/PATA) which are availing the concessionary rates of sales tax under entry 89 of Eighth schedule to the Sales Tax Act 1990.
The CGO is a continuation of the earlier procedure notified vide CGO-01 of 2021. The Federal Government initially extended sales tax and income tax concessions to industrial
units in the erstwhile FATA/PATA through SROs 1212 and 1213 of 2018, later incorporated
vide Finance Act 2019 under serial 151 of the Sixth Schedule of the Sales Tax Act and Section
159 of the Income Tax Ordinance. From 2018 to March 2021, the erstwhile FATA/PATA units imported plant, machinery, equipment, and industrial inputs through Karachi port. However,
following objections from business rivals of settled areas, the Federal Board of Revenue
regulated these imports through CGO-01/2021, requiring mandatory clearance from Azakhel Dry Port under a bonded carrier regime under Tracking and Monitoring of Cargo Rules.
Finance Act 2025 partially withdrew the earlier exemption and a phased 10% sales tax was
introduced, while the requirement of clearance through Azakhel Dry Port under CGO-01/2021 remained intact. Several units of erstwhile FATA/PATA challenged this procedure before the Peshawar High Court, which initially allowed interim clearance through Karachi port without bonded carriers or tracking mechanism. Subsequently, the Court ruled that a fresh procedure could be notified by FBR.
The Board has now notified the new procedure vide CGO-08/2025, reviving the regulatory framework to ensure secure, tracked movement of concessionary imports to the designated tribal area units under Tracking and Monitoring of Cargo Rules, 2023, with clearance required through Azakhel Dry port and addressing concerns raised by competing
industries in settled regions.
