Islamabad, March 5, 2026: The Federal Board of Revenue (FBR) on Thursday announced the extension of the income tax concession on the import of white crystalline sugar until February 28, 2026. The move aims to stabilize domestic sugar prices and support local market supply.
Under SRO 455(I)/2026, issued on March 5, 2026, sugar importers will now pay only 0.25% income tax on imported sugar, continuing the concessional rate. This marks the second extension of the reduced tax rate, which was initially applied until September 30, 2025, and later extended until November 30, 2025.
The government first introduced this concession in July 2025 to import white crystalline sugar to manage domestic prices amid supply challenges. The initiative allows commercial imports up to 500,000 metric tons under specific conditions to ensure immediate and subsequent market requirements are met.
Key conditions for the concession include:
1. Sugar imports must be carried out by the Commerce Division via the Trading Corporation of Pakistan (TCP) or approved private sector companies, following quotas and limitations.
2. The Commerce Division is responsible for quality assurance of the imported sugar, which must be verified through an international inspection firm.
Analysts expect this extension to provide short-term relief to local consumers, maintain price stability, and ensure a smooth supply of sugar across Pakistan. The measure demonstrates the government’s ongoing efforts to balance import policies with domestic market needs, ensuring affordability while supporting trade compliance.
The FBR emphasized that importers should adhere strictly to the SRO guidelines to benefit from the concession and avoid regulatory penalties.