Finance Bill 2026: Second Schedule (Fifth Schedule), part 2
The Finance Bill 2026: Second Schedule (Fifth Schedule) is part of the federal budget for FY 2026-27. This page reproduces the text of its 115 PDF pages, extracted automatically from the official PDF published by the Federal Board of Revenue.
This text was extracted automatically from the PDF's text layer. Tables may lose their column alignment, and a page with no text layer is marked rather than guessed. Check the official PDF before relying on any figure.
Page 101
2. 3-Wheeler (i) Following EV specific 1% The
electric loader components for (notwithstan concession
(PCT code assembly / ding the rate shall be
8711.6060) manufacturing in any kit of customs admissible to
form (CKD): - duty as manufacturer
specified in s of 3-
(a)Batteries other than the First Wheeler
lead acid (PCT code Schedule to electric loader
85.07), the on and from
(b)Gear (PCT code Customs the 1st day of
8483.4019), Act, 1969). July, 2025 till
(c)Electric motor with 30th day of
axle (PCT code June, 2027
8711.6050), subject to
(d)Controller (PCT code certification
8542.3100), and quota
(e)Power Switch (PCT determination
code 8536.5029) by the
(f)Electric auto cut (PCT Engineering
code 8504.9090). Development
(g)Battery Connection Board (EDB).
(PCT code
8544.4229)
(h)Battery Charger (PCT
code 8504.4020),
(i)Junction Box (PCT
code 8536.4910)
(ii)Component for 15% The
Assembly / concession
manufacturing in any shall be
kit form (CKD)- Non- admissible
Localized parts. subject to the
conditions
mentioned at
Para-2 of
SRO
656(I)/2006
dated
22.06.2006.
(iii)Component for 15% plus Subject to the
Assembly / Additional conditions
manufacturing in any kit Customs mention at
form (CKD)- Localized Duty levied Para-2 of
parts. under SRO SRO
693(I)/2006 656(I)/2006
dated dated
01.07.2006 22.06.2006.Page 102
3. Electric i) Following EV specific 1% The
motorcycle (PCT components for (notwithstan concession
code 8711.6040) assembly / ding the rate shall be
manufacturing in any kit of customs admissible to
form (CKD): - duty as manufacturer
specified in s of electric
(a) Electric Motor (PCT the First motorcycle on
code 8501.3200), Schedule to and from the
(b)Battery Charger the 1st day of
(PCT code Customs July, 2025 till
8504.4020), Act, 1969). 30th day of
(c)Switches (PCT code June, 2027
8536.5029), subject to
(d)Junction Box (PCT certification
code 8536.4910), and quota
(e)Controller (PCT code determination
8542.3100), by the
(f)Converter (PCT code Engineering
8454.1000), Development
(g)Batteries other than Board (EDB).
lead acid(PCT code
85.07)
(ii) Component for 15% The
Assembly / concession
manufacturing in any kit shall be
form (CKD)- Non- admissible
Localized parts. subject to the
conditions
mentioned at
Para-2 of
SRO
656(I)/2006
dated
22.06.2006.
(iii) Component for 15% plus Subject to the
Assembly / Additional conditions
manufacturing in any kit Customs mention at
form (CKD)- Localized Duty levied Para-2 of
parts. under SRO SRO
693(I)/2006 656(I)/2006
dated dated
01.07.2006 22.06.2006.
4. Electric Buses Components in any kit 1% (i) The
(PCT code form (CKD) (PCT code concession
8702.4090) 8702.4010) shall be
admissible
on import ofPage 103
CKD kits to
manufacturer
s of electric
buses on and
from the 1st
day of July,
2025 till 30th
day of June,
2027 to
certification
and quota
determinatio
n by the
Engineering
Development
Board (EDB).
(ii) The
concession
shall be
admissible
subject to the
conditions
mentioned at
Para-2 of
SRO
656(I)/2006
dated
22.06.2006.
5. Electric Trucks Components in any kit 1% (i) The
(PCT code form (CKD) (PCT code concession
8704.6030) 8704.6020) shall be
g.v.w. exceeding admissible
5 tonnes on import of
CKD kits to
manufacturer
s of electric
trucks on and
from the 1st
day of July,
2025 till 30th
day of June,
2027 subject
to
certification
and quota
determinatioPage 104
n by the
Engineering
Development
Board (EDB).
(ii) The
concession
shall be
admissible
subject to the
conditions
mentioned at
Para-2 of
SRO
656(I)/2006
dated
22.06.2006.
6. Electric Prime Components in any kit 1% (i) The
Movers (PCT form (CKD) (PCT code concession
code 8701.2490) 8701.2410) shall be
admissible
on import of
CKD kits to
manufacture
rs of electric
prime
movers on
and from the
1st day of
July, 2025 till
30th day of
June, 2027
subject to
certification
and quota
determinatio
n by the
Engineering
Developmen
t Board
(EDB).
(ii) The
concession
shall be
admissible
subject to
the
conditionsPage 105
mentioned
at Para-2 of
SRO
656(I)/2006
dated
22.06.2006.
7. (i) Electric (i) EV Specific 1% The
Vehicles 4- components for (notwithstan concession
wheelers assembly/manufacture ding the rate shall be
(PCT Code in any kit-form (CKD) of customs admissible to
8703.8090) duty on manufacturer
(ii) Electric these items s of electric
Trucks (LCVs as specified vehicles 4-
of g.v.w. not in the First wheelers till
exceeding 5 Schedule to 30th June
tonnes (PCT the 2027, subject
Code Customs to certification
8704.6040) Act 1969). and quota
(iii) Electric Vans determination
(PCT Code by the
8702.4090) Engineering
Development
Board (EDB).
(ii) Components for 10% The
assembly/manufacture concession
in any kit-form (CKD) shall be
Non-localized parts. admissible till
30th June
2027 subject
to the
conditions
mentioned at
Para-2 of the
SRO
656(I)/2006
dated
22.06.2006.
(iii) Components for 25% The
assembly/ manufacture concession
in any kit-form (CKD) shall be
Localized parts. admissible till
30th JunePage 106
2027 subject
to the
conditions
mentioned at
Para-2 of the
SRO
656(I)/2006
dated
22.06.2006.
TABLE-III
[Miscellaneous]
S. Description Customs Conditions
No. duty (%)
(1) (2) (3) (4)
1. Plant and machinery 0% (i)The concession shall be
specifically designed for admissible on one-time basis
use in manufacturing of for setting up the new
electric vehicles. assembly and/ or
manufacturing facility of
electric vehicles, and for
expansion in the existing units,
duly approved/ certified, by the
Engineering Development
Board (EDB).
(ii)The concession shall be
admissible to manufacturers of
the electric vehicles specified
in column (2) of Table-II
above, subject to certification
by EDB that the plant &
machinery is specifically
designed for use in setting up
of electric vehicle
manufacturing only.
2. Import of inputs for 0% (i) The concession shall be
manufacturing of EV admissible to
specific parts, as manufacturers and vendors
mentioned against S. No. of EV specific parts, subject
1, 2 and 3, of Table-II to certification and quota
above, by vendors and determination by EDB.
OEMs of EV (ii) The concession shall be
manufacturing . admissible subject to the
conditions mentioned underPage 107
SRO 655(I)/2006 dated
22.06.2006.
3. Import of CBU chargers 1% The concession shall be
with CKD kits for electric (Notwithstand admissible on the CBU
vehicles as specified in ing the rate of chargers, imported with CKD
column 2 of Table-II customs duty kits of 2-3 wheelers, 4-
above. as specified in wheelers and HCV vehicles
the First specified in Table-II above,
Schedule to subject to EDB certification.
Customs Act,
1969).
Part-V(B)
Import of Hybrid Electric Vehicles (CBUs)
Under Auto Industry Development and Export Policy (AIDEP) 2021-26
TABLE-I
S. No Description PCT Code CD% Condition
(1) (2) (3) (4) (5)
1. Hybrid Electric 8702.2090 1% The concession shall
Vehicles (HEV) (CBU) 8702.3090 be admissible to
manufacturers on
import of same
variant to be
assembled /
manufactured locally
from the date of
issuance of
manufacturing
certificate and quota
determination by
Engineering
Development Board
(EDB).
2. Hybrid Electric 8704.4100 1% The concession shall
Vehicles (HEV) (CBU) 8704.4200 be admissible to
8704.5100 manufacturers on
8704.5200 import of same
variant to be
assembled /
manufactured locally
from the date of
issuance of
manufacturing
certificate and quotaPage 108
determination by
Engineering
Development Board
(EDB).
TABLE-II
Import of Parts for Hybrid Vehicles
Under Auto Industry Development and Export Policy (AIDEP) 2021-26
S. No. Description of PCT Code CD % Condition
Imported Good
(1) (2) (3) (4) (5)
1. Following parts for Respective 4% The concession shall
Hybrid Electric Vehicle: headings be admissible to
- manufacturers of
1.Battery pack and its Hybrid electric
parts: vehicles subject to
(i) thermistor certification and quota
(ii) resistor determination by the
(iii) capacitor Engineering
(iv) bus bar Development Board
2.Cooling system for (EDB).
battery packs including
blower, tubes, hoses,
pump
3.Sensor hybrid
vehicle battery voltage
4.Inverter assembly
with converter (Power
control unit)
5.Electric motor and
generator for
Transaxle assembly
6.Battery charging
system / inlet
connectors
7.Hybrid system
control unit / hybrid
ECU
8.Junction box
2. Following parts for Respective 3% The concession shall
Plug-in-Hybrid Electric headings be admissible to
Vehicle: - manufacturers of
1.Battery pack and its Plug-in Hybrid electric
parts: vehicles subject to
(i) thermistor certification and quotaPage 109
(ii) resistor determination by the
(iii) capacitor Engineering
(iv) bus bar Development Board
2.Cooling system for (EDB).
battery packs including
blower, tubes, hoses,
pump
3.Sensor hybrid
vehicle battery voltage
4.Inverter assembly
with converter (Power
control unit)
5.Electric motor and
generator for
Transaxle assembly
6.Battery charging
system / inlet
connectors
7.Hybrid system
control unit / hybrid
ECU
8.Junction box
9.Charger
10.Charging port”
Part V(C)
Import of Agricultural Tractors
TABLE
Customs
S. No. Description PCT Code
Duty%
(1) (2) (3) (4)
1. Agricultural Tractors, having an 8701.9220 15%
engine capacity exceeding 26 kW but 8701.9320
not exceeding 75kW
2. Agricultural Tractors (other than 8701.9100, 10%
mentioned at S. No. 1 above) 8701.9400
8701.9500
Part-VI
Imports of Aviation Related Goods i.e. Aircrafts and Parts etc.
by Airline Companies/Industry under National Aviation Policy 2023
Note: - For the purposes of this Part, the following conditions shall apply besides
the conditions as specified in column (5) of the Table below: -Page 110
(i) The exemption shall be admissible to Maintenance, Repair & Overhaul
Companies (MROs) and Aircraft Maintenance Organizations (AMOs) duly
authorized by the Defence Division, and the Airline Companies having valid
registration and license from the Pakistan Civil Aviation Authority under the
Pakistan Civil Aviation Act, 2023 duly shared with the Customs Computerized
System or Pakistan Single Window to the effect that the intending importer is
operating in the country or intends to operate in the country in the airline
sector;
(ia) The list of imported items is duly approved by the Pakistan Airports Authority,
Defence Division, Government of Pakistan for every consignment imported
by MRO or AMO in line with Policy Framework approved by the Government
of Pakistan;
(ii) The Chief Executive, or the person next in hierarchy duly authorized by the
Chief Executive or Head of the importing Company shall certify that the
imported goods/items are the company's bonafide requirement and shall be
used for the purpose as defined/notified by the Defence Division,
Government of Pakistan under the Aviation Policy. The importer shall declare
all relevant information to the Customs while claiming exemption regarding
genuineness of the claim through Customs computerized system or Pakistan
single window; and
(iii) In case of deviation from the above stipulations, the Collector of Customs
shall initiate proceedings for recovery of duty and taxes under the relevant
laws.
TABLE
S. Description of Customs Special Condition
PCT Code
No. goods duty
(1) (2) (3) (4) (5)
1. Aircraft 8802.4000 0% Whether imported or acquired
on wet or dry lease. In case of
M/s Pakistan International
Airlines Corporation this
exemption shall be admissible.
2. Spare parts Respective 0% For use in aircraft, trainer
headings aircraft and simulators.
3. Maintenance Respective 0% For use in trainer aircraft
Kits headings (8802.2000 & 8802.3000).
4. Machinery, Respective 0% For setting up Maintenance,
equipment, headings Repair & Overall (MRO)
tools, kits and workshop and for overhauling of
parts aircrafts by MRO company and
Aircraft Maintenance
Organization (AMO) recognized
by Defence Division.Page 111
5. Machinery, Respective 0% On one-time basis for exclusive
equipment, headings use of New/ Greenfield airports
operational by company authorized by
tools, furniture& Defence Division.
fixture
6. Aviation Respective 0% On one-time basis for aircrafts
simulators headings by airline company recognized
by Defence Division.
7. Aircraft engine 8407.1000 0% For use in aircraft and trainer
aircraft.
Part-VII Miscellaneous
[Omitted]
Part-VIII
Imports of specific Goods allowed at Joint Border Sustenance Markets
In order to ensure smooth functioning and operationalization of Border Markets in specific
border areas, the imports under this part shall be subject to following conditions, namely.
-
(i) Border markets will be functional for two days each week and total allowance
per day for the visitor will be $100.
(ii) The Customs Value of imported goods will be displayed for ascertaining the
admissible quantities of imported goods.
(iii) The visitor will purchase goods from any category up to US $50 on
concessional rate of leviable duty/taxes as mentioned in column (4) of the
Table.
(iv) In case, a visitor chooses to purchase goods of value more than $50 from a
specific category, it will be considered as commercial quantity being liable to
duty/taxes on statutory rates.
(v) The Customs staff posted at the border market will make an entry via electronic
system for the goods purchased by the visitor on the prescribed format as
notified by the Board.
(vi) A system generated receipt will be issued to the visitor bearing his Name &
CNIC No. by the Custom Officer in respect of goods purchased along with
payable Customs Duty.
Table
S. Description PCT Customs
No. Code Duty (%)
(1) (2) (3) (4)Page 112
Category-I
1 Seed (potatoes) 0701.1000 5
2 Tomatoes, fresh or chilled. 0702.0000 5
3 Onions and shallots 0703.1000 5
4 Garlic 0703.2000 5
5 Other 0704.9000 5
6 Carrots and turnips 0706.1000 5
7 Cucumbers and gherkins fresh or chilled. 0707.0000 5
8 Peas (pisum sativum) 0708.1000 5
9 Beans (vigna spp., phaseolus spp.) 0708.2000 5
10 Other leguminous vegetables 0708.9000 5
11 Peas (Pisum sativum) 0713.1000 5
12 Grams (dry/whole) 0713.2010 5
13 Other 0713.2090 5
14 Beans of the species Vigna mungo (L.) Hepper 0713.3100 5
or Vigna radiata (L.) Wilczek
15 Small red (Adzuki) beans (Phaseolus or Vigna 0713.3200 5
angularis)
16 Kidney beans including white beans 0713.3300 5
17 Bambara - vigna subteranea or vaahdzeia 0713.3400 5
subterrea
18 Cow peas (Vigna unguiculata) 0713.3500 5
19 Other 0713.3990 5
20 Lentils (dry whole) 0713.4010 5
21 Broad beans (Vicia faba var. Major) and horse 0713.5000 5
beans (Vicia faba var. Equina, Vicia faba var.
Minor)
22 Pigeon peas (cajanus cajan) 0713.6000 5
23 Other 0713.9090 5
24 Vanilla (Neither crushed nor ground) 0905.1000 5
25 Cinnamon 0906.1100 5
26 Other (cinnamon and cinnamon tree flowers) 0906.1900 5
27 Neither crushed nor ground (Cloves) 0907.1000 5
28 Crushed or ground (Cloves) 0907.2000 5
29 Neither Crushed nor ground (Nutmeg) 0908.1100 5
30 Crushed or ground (Nutmeg) 0908.1200 5
31 Neither crushed nor ground (Maze) 0908.2100 5
32 Crushed or ground (Maze) 0908.2200 5
33 Large (cardamoms) 0908.3110 5
34 Small (cardamoms) 0908.3120 5
35 Crushed or ground (Cardamoms) 0908.3200 5
36 Neither crushed nor ground (Coriander) 0909.2100 5
37 Crushed or ground (Coriander) 0909.2200 5Page 113
38 Neither crushed nor ground (Seeds of Cumin) 0909.3100 5
39 Crushed or ground (Seeds of Cumin) 0909.3200 5
40 Neither crushed nor ground (Seeds of Anise, 0909.6100 5
Badian, Caraway, Fennel etc)
41 Crushed or ground (Seeds of Anise, Badian, 0909.6200 5
Caraway, Fennel etc)
42 Thyme; bay leaves 0910.9910 5
43 Barley (seeds) 1003.1000 5
44 Other (barley) 1003.9000 5
45 Sunflower seeds ,whether or not broken 1206.0000 5
46 Locust beans 1212.9200 5
47 Cereal straws and husks 1213.0000 5
48 Animal Fats and Oil and their fractions 1516.1000 5
49 Vegetable Fats and their fractions 1516.2010 5
50 Vegetable Oils and their fractions 1516.2020 5
51 Knives and cutting blades for paper and paper 8208.9010 5
board
Category-II
1 Of a fat content, by weight, not exceeding 1 % 0401.1000 10
(Milk and Cream)
2 Of a fat content, by weight, exceeding 1 % but 0401.2000 10
not exceeding 6 % (Milk and Cream)
3 Of a fat content, by weight, exceeding 6 % but 0401.4000 10
not exceeding 10% (Milk and Cream)
4 Of a fat content, by weight, exceeding 10 % 0401.5000 10
(Milk and Cream)
5 Leeks and other alliaceous vegetables 0703.9000 10
6 Cauliflowers and headed broccoli 0704.1000 10
7 Brussels sprouts 0704.2000 10
8 Cabbage lettuce (head lettuce) 0705.1100 10
9 Other 0705.1900 10
10 Witloof chicory (cichorium intybus var.foliosum) 0705.2100 10
11 Other 0705.2900 10
12 Other 0706.9000 10
13 Fruits of the genus Capsicum or of the genus 0709.6000 10
Pimenta
14 Figs 0804.2000 10
15 Fresh (grapes) 0806.1000 10
16 Dried (grapes) 0806.2000 10
17 Watermelons 0807.1100 10
18 Other 0807.1900 10
19 Apples 0808.1000 10
20 Green tea 0902.1000 10
21 Other green tea 0902.2000 10
22 Crushed or ground (Ginger) 0910.1200 10Page 114
23 Turmeric (curcuma) 0910.3000 10
24 Other 0910.9990 10
25 Lactose (sugar ) 1702.1110 10
26 Lactose syrup 1702.1120 10
27 Other 1702.1900 10
28 Caramel 1702.9020 10
29 Oilcake and other solid residues, whether or 2304.0000 10
not ground or in the form of pellets, resulting
from the extraction of soya bean oil.
30 Other (animal feed) 2309.9000 10
31 For sewing (thread) 5204.2010 10
32 For embroidery (Thread) 5204.2020 10
33 Spades and shovels 8201.1000 10
34 Other (Tools for masons, watchmakers, miners 8205.5900 10
and hand tools nes)
35 For kitchen appliances or for machines used by 8208.3000 10
the food industry
36 Other 8208.9090 10
Category-III
1 Yogurt 0403.2000 20
2 Other (potatoes) 0701.9000 20
3 Sweet corn 0710.4000 20
4 Mixtures of vegetables 0710.9000 20
5 Fresh (dates) 0804.1010 20
6 Dried (dates) 0804.1020 20
7 Apricots 0809.1000 20
8 Sour cherries (Prunus cerasus) 0809.2100 20
9 Other 0809.2900 20
10 Peaches, including nectarines 0809.3000 20
11 Plums and sloes 0809.4000 20
12 Strawberries 0810.1000 20
13 Kiwi fruit 0810.5000 20
14 Neither crushed nor ground (Ginger) 0910.1100 20
15 Other (Durum wheat (excl. Seed for sowing)) 1001.1900 20
16 Other (Wheat and meslin (excl. Seed for 1001.9900 20
sowing, and durum wheat))
17 Of wheat (flour) 1101.0010 20
18 Of meslin (flour) 1101.0020 20
19 Vermicelli 1902.1920 20
20 Other (packed cake) 1905.9000 20
21 Homogenised preparations 2007.1000 20
22 Citrus fruit 2007.9100 20
23 Other 2007.9900 20
24 Organic surface-active products and 3401.3000 20
preparations for washing the skin, in the form ofPage 115
liquid or cream and put up for retail sale,
whether or not containing soap
25 Preparations put up for retail sale 3402.5000 20
26 Other 3402.9000 20
27 Others (Tableware and kitchenware of 6911.1090 20
porcelain or china)
28 Other (Household articles nes & toilet articles of 6911.9000 20
porcelain or china)
29 Other (Glassware for table or kitchen purposes 7013.4900 20
(excl. Glass having a linear c)
30 Other (Glassware nes (other than that of 70.10 7013.9900 20
or 70.18))
31 Spoons 8215.9910 20
32 Other (Tableware articles not in sets and not 8215.9990 20
plated with precious meta)
33 Bicycles and other cycles (including delivery 8712.0000 20
tricycles), not motorised.
34 Vacuum flasks 9617.0010 20
35 Other 9617.0020 20”.
*****