5% sales tax for specified plant, machinery, equipment and apparatus

Name of Incentive

5% sales tax for specified plant, machinery, equipment and apparatus

Type of Incentive

GST Incentive





Sub Sector


Incentive Details


1. Machinery, equipment, materials, capital goods, specialized vehicles (4x4 non luxury) i.e. single or double cabin pickups, accessories, spares, chemicals and consumables meant for mineral exploration phase.
2. Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for the exploration phase.

Criteria for Consideration

Plant, machinery, equipment and apparatus, including capital goods, specified in Eighth Schedule, Table 2 (Annexure), falling under the HS Codes specified in column (3) of that Annexure, shall be charged to sales tax at the rate of five percent subject to the following conditions, besides the conditions specified in column (4) of the Annexure including following conditions:
1. This concession shall be available to those Mineral Exploration and Extraction Companies or their authorized operators or contractors who hold permits, licenses, leases and who enter into agreements with the Government of Pakistan or a Provincial Government.
2. Temporarily imported goods shall be cleared against a security in the form of a post-dated cheque for the differential amount between the statutory rate of customs duty and sales tax and the amount payable under this notification, along with an undertaking to pay the customs duty and sales tax at the statutory rates in case such goods are not re-exported on conclusion of the project.
3. The goods shall not be sold or otherwise disposed of without prior approval of the FBR and the payment of customs duties and taxes leviable at the time of import. These shall however be allowed to be transferred to other entitled mining companies with prior approval of the Board.

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