April 14, 2025 Karachi, April 14, 2025 – The Federal Board of Revenue (FBR) has revealed that it extended approximately Rs 60 billion in tax relief during the current fiscal year through reduced income tax rates applied to a wide range of imports. This relief was granted under Clause 56 of Part IV of the Second Schedule of the Income Tax Ordinance, 2001. According to the FBR’s latest annual tax expenditure report, the reduced tax rate facility aims to support sectors crucial to the country’s economy while easing the cost burden on key industries. The FBR clarified that the exemption from the usual withholding tax under Section 148 applies to specified individuals, organizations, and types of goods brought into Pakistan through imports. The FBR outlined a comprehensive list of entities and import categories eligible for this tax incentive: 1. Imports of goods falling under Chapters 86 and 99 of the Pakistan Customs Tariff (excluding PCT heading 9918). 2. Petroleum products, including crude oil, furnace oil, motor spirit, JP-1, high-speed diesel oil, base oil for lubricants, light diesel oil, and super kerosene oil, imported by major oil marketing companies like Pakistan State Oil, Shell, Chevron, Attock Petroleum, Total-Parco, and others licensed by OGRA, as well as oil refineries. 3. Goods imported by direct and indirect exporters under subchapter 7 of Chapter XII of SRO 450(I)/2001. 4. Temporarily imported goods that are exempt from customs duty and sales tax under SRO 492(I)/2009, including items brought in by international athletes. 5. Imports under Manufacturing Bond Schemes as detailed in Chapter XV of the Customs Rules 2001. 6. Mineral oil imported by pesticide manufacturers, exempt under SRO 857(I)/2008. 7. Imports by the Federal Government, provincial governments, and local governments. 8. Foreign companies and their associations where a majority share is held by a foreign government. 9. Imports of plant and machinery by contractors executing government projects, subject to certification. 10. Petroleum companies importing crude oil, diesel, kerosene, and…