Karachi, March 19, 2026 – The Federal Board of Revenue has issued SRO 527(I)/2026, extending the sales tax exemption and concessional rates on the import of white crystalline sugar in a move aimed at stabilizing domestic prices and ensuring adequate supply in the market.
Under the new notification, the FBR has maintained a reduced sales tax rate of 0.25% instead of the standard 18% on imported sugar. Additionally, the value-added tax structure on sugar imports has also been revised to support continued concessional treatment until February 28, 2026.
This latest measure follows the government’s earlier decision to extend income tax concessions on sugar imports through SRO 455(I)/2026, issued on March 5, 2026. That notification also allowed importers to pay only 0.25% income tax on imported sugar, reinforcing the government’s effort to keep essential commodity prices under control.
The exemption scheme was initially introduced in July 2025 and has since been extended multiple times, first up to September 30, 2025, and later to November 30, 2025, before the latest extension. The policy allows commercial imports of up to 500,000 metric tons of sugar under defined conditions.
The imports are facilitated through the Trading Corporation of Pakistan or approved private sector entities under the supervision of the Commerce Division. Strict quality checks are mandatory, with verification conducted through internationally recognized inspection firms.
Analysts believe the extension will help ensure price stability, prevent shortages, and provide short-term relief to consumers amid fluctuating market conditions. At the same time, authorities have urged importers to strictly comply with SRO guidelines to avoid penalties and ensure transparency in the import process.
The government’s continued reliance on concessional import policies reflects its strategy to balance domestic supply constraints with market demand while maintaining regulatory oversight.