Income Tax Exemptions Expiring: Government Set to Tax FATA, PATA, and EV Kits from July 1

ISLAMABAD / KARACHI — The Tax Policy Unit of the Ministry of Finance and the FBR have completed an extensive review confirming that multiple sales and income tax exemptions will officially expire on June 30, 2026. Starting July 1, corporate operations, associations, and domiciled individuals within the erstwhile tribal areas (FATA/PATA) of KP and Balochistan will enter the standard taxable network. Additionally, the historic value-addition sales tax exemptions currently granted to Completely Knocked Down (CKD) kits for electric vehicles (4-wheelers/SUVs under 50 kWh) will terminate, significantly reshaping pricing dynamics for the local automotive and clean energy markets.