ISLAMABAD: The Federal Board of Revenue (FBR) has extended the deadline for granting duty and tax exemption on the import of sugar by the Trading Corporation of Pakistan (TCP) until November 30, 2025.
The decision is aimed at stabilizing domestic prices and ensuring an adequate supply of the commodity in the local market.
According to details, the exemption covers the import of up to 500,000 metric tons of sugar. The FBR has extended the waiver of customs duty, reduced sales tax from 18 percent to 0.25 percent, and lowered withholding tax to 0.25 percent. Additionally, the three percent minimum value-added tax (VAT) on sugar imports has also been exempted.
This exemption has been formalized through amendments in three key notifications: SRO 1215(I)/2025 (customs), SRO 1216(I)/2025 (income tax), and SRO 1217(I)/2025 (sales tax). These were modified via fresh notifications—SRO 1834(I)/2025, SRO 1833(I)/2025, and SRO 1832(I)/2025—issued on Monday. The revised measures push the earlier cut-off date of September 30 to November 30, 2025.
Officials confirmed that the total relief equals nearly 47 percent of taxes and duties usually levied on sugar imports. Normally, such imports are subject to 20 percent customs duty, 18 percent sales tax, three percent VAT, and 6.5 percent income tax, totaling 47.5 percent. After the exemption, only about five percent remains applicable.
Under the new framework, sugar imports will be managed by the Commerce Division through TCP and, in some cases, the private sector. Strict conditions apply, including quota allotments and quality checks by international inspection firms.
The FBR’s move reflects the government’s commitment to ensuring food security while providing targeted tax relief through exemption measures that lower the landed cost of sugar for consumers.