Tax-free livestock import scheme launched

The Federal Board of Revenue (FBR) has introduced a new scheme allowing duty-free imports of live cattle, sheep, and goats for fattening, with a subsequent export as live animals or processed meat. This initiative aims to support export-oriented livestock and meat processing businesses. The new rules, outlined in notification SRO1752 of 2026, are subject to finalization within seven days following stakeholder feedback.

The scheme waives various taxes, including customs duty, additional customs duty, regulatory duty, sales tax, federal excise duty, and withholding income tax, contingent upon fulfilling export obligations and regulatory safeguards. However, the exemption does not extend to animals born within Pakistan. The program comprises two tracks: Track-A permits the import of live animals for fattening and eventual export as live animals, while Track-B allows for the import of animals intended for fattening, slaughter, processing, and meat or meat product export.

Under the proposed regulations, authorized businesses can also import essential inputs like animal feed, veterinary medicines, vaccines, supplements, disinfectants, and identification devices, all duty-free and tax-exempt, provided they are utilized exclusively for fattening imported animals for export. Additionally, investors can import machinery and equipment for establishing or expanding feedlots, quarantine facilities, slaughterhouses, and meat processing plants under project authorizations.

These projects enjoy a 24-month commissioning period, extendable by an additional 12 months with approval from the Chief Collector. During this period, normal export performance requirements or a firm export contract are not applicable. To comply with the scheme, businesses must export at least 80% of imported animals by head under Track-A or 80% of total production by value under Track-B during the first full financial year of operations.

This percentage must be sustained for the subsequent four financial years. The FBR specifies timelines for processing imported livestock, mandating their export or slaughter for export within 180 days for cattle and within 120 days for sheep and goats under Track-B. Slaughtering must occur at registered export establishments under veterinary supervision, with distinct processing arrangements for imported and domestic animals.