Islamabad: Pakistan has extended tax relief measures on sugar imports in a move aimed at ensuring adequate supply and controlling prices in the domestic market, Business Recorder reported.
The Federal Board of Revenue has announced an extension of exemptions and reduced tax rates on sugar imports carried out by the Trading Corporation of Pakistan until February 28, 2026. The decision was issued through official notifications.
According to details, the exemption on customs duty for the import of up to 500,000 metric tons of sugar has been extended to the new deadline. In addition, the reduced sales tax rate of 0.25 percent, down from 18 percent, and a similar reduced withholding tax of 0.25 percent will continue to apply on these imports.
The extension replaces the earlier deadline of November 30, 2025, allowing more time to benefit from the tax relief measures.
Officials said the move results in nearly 47 percent exemption in total taxes and duties on sugar imports. Normally, sugar imports attract about 47.5 percent in taxes, including 20 percent customs duty, 18 percent general sales tax, three percent value-added tax, and 6.5 percent income tax. With the new relief measures, only around five percent tax will remain applicable on imports handled by the state.
The decision follows approval by the federal cabinet, under which the withholding tax on commercial imports of white crystalline sugar has been set at 0.25 percent for the specified quantity.
Authorities said sugar imports may be carried out either through the Commerce Division via TCP or by the private sector, subject to conditions, quotas, and requirements set for the period. The Commerce Division has also been tasked with ensuring quality checks through an international inspection firm.
The deadline for availing tax exemptions, which was earlier set for September 30, 2025, has now been extended to February 28, 2026.
