Islamabad (Commerce Desk): The government has extended the period of duty and tax exemptions on sugar imports until February 28, 2026. The Federal Board of Revenue (FBR) has also issued a notification regarding the move.
According to reports, the sales tax on sugar imports has been set at 0.25% instead of 18%, while the withholding tax has also been reduced to 0.25%. This tax concession applies only to sugar imported through the Trading Corporation of Pakistan (TCP).
The government stated that the overall tax rate will fall from approximately 47% to around 5%. Under the cabinet’s decision, a reduced tax rate has been applied on white crystal sugar imports, and imports through TCP are limited to 500,000 metric tons.
Sugar import permissions are conditional under a quota system, either through TCP or the private sector. The previously set expiration date for the tax concession was September 30, 2025, which has now been extended.
