VAT & SD Act 2012
Section 126 - Exemption
(as updated till Finance Ordinance 2025)
1[ (1) The Government may, by notification in the official Gazette, exempt importation or supply of any goods or class of goods or rendering of any service from Value Added Tax or, where applicable, Supplementary Duty 2[or Advance Tax] chargeable under this Act, subject to any limitation or condition specified in the notification.
(2) The Board, may, by special Order, exempt importation or taking delivery of any goods and receiving of any service for implementation, of any international or bilateral agreement on reciprocal basis, from Value Added Tax or, where applicable, Supplementary Duty 3[or Advance Tax] chargeable under this Act, subject to any limitation and condition specified in the Order.
(3) 4[***] ]
1 Section 126 was substituted by section 101 of the Finance Act, 2019 (Act No. 10 of 2019) with effect from 01 July 2019.
2 The words “or Advance Tax” were inserted by section 77(a) of the Finance Act, 2020 (Act No. 09 of 2020) with effect from 01 July 2020.
3 The words “or Advance Tax” were inserted by section 77(a) of the Finance Act, 2020 (Act No. 09 of 2020) with effect from 01 July 2020.
4 Sub-section (3) repealed by section 24 of the Finance Ordinance, 2025 (Ordinance No. 28 of 2025) with effect from 01 July, 2025.
Disclaimer: This is the authentic English text of The Value Added Tax and Supplementary Duty Act 2012, as published under SRO No. 440-Law/2025/326-Mushak dated 05 November 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.