# Is bread, naan or roti from a bakery or tandoor exempt from sales tax?

Source: https://qanoondigest.com/faq/restaurants-cafes-bakeries/bread-naan-roti-sales-tax-exempt
Law current to: 30 June 2026. Reviewed: 2026-09-25. Checked line by line against the law: not yet.

> This is not legal or tax advice. Qanoon Digest is an independent publication and is not affiliated with, endorsed by, or connected to the Federal Board of Revenue or the Government of Pakistan. Content is a plain-language summary of publicly available FBR documents and may be out of date or incomplete. Always verify against the official document before acting, and consult a qualified professional for your situation.

## Short answer

Yes. Section 13(1) of the Sales Tax Act exempts goods in the Sixth Schedule, and serial 54 of Table-2 covers all types of breads, nans and chapattis on local supply, with no brand or seller carve-out. Buns, rusk and sheer mal sit in a separate Eighth Schedule entry at 10%, and cakes and sweets are in neither entry.

**Applies to:** Bakery and tandoor owners who make or sell bread, naan or roti in Pakistan, and customers who want to know whether tax applies.

Bread, naan and roti supplied within Pakistan are exempt from federal sales tax. The exemption is serial 54 of Table-2 of the Sixth Schedule to the Sales Tax Act, 1990, and section 13(1) is what gives Sixth Schedule entries their effect. The entry is short and broad, but it names only breads, nans and chapattis, so other bakery products need their own answer.

## What does the law say?

Section 3(1) of the Sales Tax Act charges sales tax at eighteen per cent of the value of taxable supplies. Section 13(1) then says that, notwithstanding section 3, the supply or import of goods specified in the Sixth Schedule "shall, subject to such conditions as may be specified by the Federal Government, be exempt from tax under this Act".

Table-2 of the Sixth Schedule is headed "Local Supplies only". Serial 54 reads:

| Serial | Description | Heading |
| --- | --- | --- |
| 54 | All types of breads, nans and chapattis | Respective headings |

A footnote in the consolidated Act says serials 52 to 54 were added by the Finance Act, 2022. Note 1 to the Schedule says exemption is admissible on the basis of the description of goods in column 2, and the customs headings are given for reference and classification only.

## What does "all types" cover, and what does it not?

The words "All types" and the absence of any exclusion matter. Serial 54 does not exclude:

- bread sold under a brand name;
- bread sold by a Tier-1 retailer or in a mall;
- factory-made bread as opposed to a tandoor's naan.

The contrast is visible in the same table. Serial 56 exempts milk but excludes milk "sold under a brand name" or supplied by corporate dairy farms. Serial 54 has no such words.

What serial 54 does not reach:

| Product | Where the Act deals with it |
| --- | --- |
| Buns, rusk, sheer mal, vermicelli | Eighth Schedule, Table-1, serial 87: local supply at 10%, "excluding those sold in bakeries, and sweet shops falling in the category of Tier-1 retailers" |
| Cakes, pastries, mithai | Not named in serial 53 or 54 of Table-2 |
| Imported bread | Table-2 is for local supplies only |

A footnote says serials 84 to 88 of the Eighth Schedule were inserted by the Finance Act, 2024.

## Worked example (illustrative figures)

Bilal runs a registered bakery in an air-conditioned shopping mall in Rawalpindi, which makes him a Tier-1 retailer under section 2(43A)(b). His made-up sales for one day:

| Item | Sales | Treatment |
| --- | --- | --- |
| Double roti and naan | Rs. 40,000 | Exempt, serial 54 |
| Buns and rusk | Rs. 10,000 | Not serial 54; serial 87 excludes bakeries that are Tier-1 |
| Cakes | Rs. 20,000 | Not serial 54 |

Step 1: the bread and naan carry no sales tax. Rs. 40,000 x 0 = Rs. 0.

Step 2: the buns and rusk fall outside serial 87 because Bilal's bakery is a Tier-1 retailer. That entry does not itself give a rate for the excluded case. If the general rate in section 3(1) applies with no other provision reducing it, the tax is Rs. 10,000 x 18% = Rs. 1,800.

Step 3: the cakes are not in serial 54. On the same assumption, Rs. 20,000 x 18% = Rs. 3,600.

Had Bilal's bakery not been a Tier-1 retailer, serial 87 would describe the buns and rusk at 10%: Rs. 10,000 x 10% = Rs. 1,000. How a non-Tier-1 retailer actually pays sales tax is a separate question.

## What if ...?

**What if I run a tandoor that sells naan and roti only?** Serial 54 covers nans and chapattis of all types on local supply. It does not depend on the size of the business or on registration.

**What if I am registered and integrated with FBR?** The exemption still applies, but rule 150R(9) of the Sales Tax Rules, 2006 says electronic invoices for exempt items are also issued through the integrated system.

**What if I serve naan with a meal in my restaurant?** Prepared food supplied by restaurants and caterers has its own exemption from federal sales tax at serial 53. A restaurant bill may still carry a tax on the service under the ICT (Tax on Services) Ordinance in Islamabad or provincial law elsewhere.

## Common mistakes

- **Assuming branded bread is taxable.** Serial 54 has no brand exclusion.
- **Treating buns and rusk as "bread".** They have their own entry at serial 87 of the Eighth Schedule.
- **Treating the exemption as a reason not to invoice.** Rule 150R(9) applies to exempt items for integrated persons.
- **Applying serial 54 to imports.** Table-2 is for local supplies only.

## What to check in the official text

Read section 13 and Table-2 of the Sixth Schedule, including its Notes, and serial 87 of Table-1 of the Eighth Schedule, in the Sales Tax Act, 1990 as amended to 30 June 2026. Section 13(1) makes the exemption subject to conditions the Federal Government may specify, so check for any notification attaching conditions to serial 54.

## Frequently asked

### Is branded or packaged bread also exempt?

Serial 54 of Table-2 of the Sixth Schedule says "All types of breads, nans and chapattis" and contains no exclusion for branded bread or for bread sold by Tier-1 retailers. Other entries in the same table do carve out brands, for example serial 56 on milk excludes milk sold under a brand name, but serial 54 does not.

### Are buns and rusk covered by the bread exemption?

They are not named in serial 54. Buns, rusk, sheer mal and vermicelli have their own entry at serial 87 of Table-1 of the Eighth Schedule, at 10% on local supply, excluding those sold in bakeries and sweet shops that are Tier-1 retailers.

### Does an integrated bakery still need to issue an invoice for bread?

Yes. Rule 150R(9) of the Sales Tax Rules, 2006 says electronic invoices for exempt items are also issued through the system integrated with the Board's computerized system.

## Citations

- [Sales Tax Act, 1990, section 13 (Exemption)](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30#13-exemption), as amended to 2026-06-30: "supply of goods or import of goods specified in the Sixth Schedule shall, subject to such conditions as may be specified by the" Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf
- [Sales Tax Act, 1990, Sixth Schedule, Table-2 (Local Supplies only), serial number 54](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30), as amended to 2026-06-30 Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf
- [Sales Tax Act, 1990, Eighth Schedule, Table-1, serial number 87 (vermicillies, sheer mal, bun and rusk)](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30), as amended to 2026-06-30 Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf
- [Sales Tax Act, 1990, section 2 (Definitions)](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30#2-definitions), as amended to 2026-06-30: "(b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;" Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf
- [Sales Tax Act, 1990, section 3 (Scope of tax)](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30#3-scope-of-tax), as amended to 2026-06-30: "there shall be charged, levied and paid a tax known as sales tax at the rate of" Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf
- [Sales Tax Rules, 2006, section 150R (Obligations and requirements)](https://qanoondigest.com/rules/sales-tax-rules-2006/sales-tax-rules-2006-2025-06-30#150r-obligations-and-requirements), as amended to 2025-06-30: "(9) In case of supply of exempt items, the electronic invoices shall also be issued through system integrated with the Board’s Computerized System under these rules." Official source: https://download1.fbr.gov.pk/Docs/2025881385446623STR-2006-UpdatedUpto06-08-2025(ver-iv).pdf