Govt Exempts Diplomats From FED on Imports

After granting customs duty and sales tax exemption to diplomats in Pakistan, the government has now extended federal excise duty (FED) exemption on imports of diplomats, diplomatic missions, privileged persons, and privileged organizations. The revised Federal Excise Act 2005, updated up to June 30, 2024, revealed that the conditional exemption of FED would be available on the imports made by diplomats, diplomatic missions, privileged persons, and privileged organizations which are covered under various Acts, Orders, Rules, Regulations, and Agreements passed by the Parliament or issued or agreed by the government of Pakistan. Under the Third Schedule (Conditional exemptions) of the Federal Excise Act 2005, all goods imported, produced, or manufactured in Pakistan and services provided or rendered except such goods and services as are specified in the First Schedule shall be exempt from the whole of excise duties.