ISLAMABAD: The Federal Board of Revenue (FBR) has extended customs duty exemptions on the import of aircraft, aviation spare parts, aircraft engines and maintenance equipment for the fiscal year 2026-27, in a move aimed at supporting Pakistan’s aviation sector and encouraging investment in aircraft maintenance infrastructure.
According to the revised customs tariff provisions issued following the Finance Bill 2026, eligible airline companies, Maintenance, Repair and Overhaul (MRO) firms, and Aircraft Maintenance Organisations (AMOs) will continue to enjoy zero-rated customs duty on a wide range of aviation-related imports, subject to specific regulatory conditions.
The FBR stated that the concession will be available to MROs and AMOs duly authorised by the Defence Division, as well as airline companies holding valid registrations and licences issued by the Pakistan Civil Aviation Authority (PCAA) under the Pakistan Civil Aviation Act, 2023.
Under the new framework, aviation companies seeking duty-free imports must ensure that all imported items are approved by the Pakistan Airports Authority and the Defence Division for each consignment. The approval requirement is intended to ensure compliance with the government’s aviation policy and regulatory standards.
The FBR further directed that the chief executive officer or an authorised senior official of the importing company must certify that the imported goods represent the company’s bona fide operational requirements and will be used solely for approved aviation purposes. Importers will also be required to submit the relevant declarations through the Customs Computerised System or Pakistan Single Window.
Authorities warned that any misuse of the concession or deviation from prescribed conditions could result in the recovery of customs duties and taxes under applicable laws.
Zero Duty on Aircraft and Aviation Equipment
Under the notified concessionary regime, customs duty has been reduced to zero per cent on the following categories:
• Aircraft imported or acquired through wet or dry lease arrangements.
* Aircraft spare parts for use in aircraft, trainer aircraft and simulators.
• Maintenance kits used in trainer aircraft.
• Machinery, equipment, tools, kits and parts required for establishing MRO workshops and aircraft overhaul facilities.
• Machinery, operational tools, furniture and fixtures imported on a one-time basis for new or greenfield airports authorised by the Defence Division.
• Aviation simulators imported on a one-time basis by recognised airline companies.
• Aircraft engines classified under PCT Code 8407.1000 for use in aircraft and trainer aircraft.
The concession is expected to reduce operating costs for airlines and maintenance providers while encouraging investment in aviation infrastructure, aircraft maintenance capabilities and training facilities within Pakistan.
Industry stakeholders believe the continuation of these exemptions will support the government’s broader objective of developing a competitive aviation sector, reducing dependence on foreign maintenance facilities and attracting investment in aviation-related services.
