The National Board of Revenue (NBR) has granted a complete waiver of all customs duties and taxes on the import of electric buses for transporting students of schools, colleges and universities.

The exemption was announced through an SRO issued on April 27, 2026, covering customs duty (CD), regulatory duty (RD), value added tax (VAT), supplementary duty (SD), advance tax (AT) and advance income tax (AIT).

According to the notification, both educational institutions importing electric buses directly and third parties importing on their behalf for student transport will be eligible for the tax benefits.

To qualify, the buses must be used exclusively for transporting students and painted yellow. The vehicles must also clearly display markings such as “School”, “College”, “Student Bus” or “Transport” in a visible manner.

Importers seeking to avail the facility will need to apply to the NBR, which is required to dispose of applications within 10 working days without any duty or tax payments.

Officials said the move is aimed at encouraging the adoption of environmentally friendly transport for students at an affordable cost.

It is expected to help educational institutions provide modern and comfortable transport, enable large numbers of students to commute regularly, ease traffic congestion and reduce fuel consumption.

The initiative is also likely to significantly cut transportation costs for parents.

Meanwhile, the government is actively considering reducing duties and taxes on the import of electric buses for general passengers.

Officials believe such a move would encourage people to shift from private cars to modern electric buses, leading to further fuel savings and lower travel costs for the public.