Islamabad, July 1, 2025 – In a significant fiscal measure aimed at strengthening domestic industries and regulating imports, the Federal Board of Revenue (FBR) has issued SRO 1151(I)/2025, dated June 30, 2025, to impose additional customs duty on a wide range of imported goods for the fiscal year 2025–26.
This regulatory step has come into effect from July 1, 2025, replacing the earlier SRO 929(I)/2024.
The FBR, exercising powers under sub-section (5) of Section 18 of the Customs Act, 1969, has introduced a tiered structure of additional customs duties (ACD) aligned with various tariff slabs. The move is part of broader fiscal reforms under the Finance Act, 2025, aimed at promoting import substitution, controlling the trade deficit, and ensuring economic stability.
Key Provisions of the Notification:
1. Additional Customs Duty Rates by Tariff Slabs:
o A 2% ACD will apply to:
Goods falling under the 15% tariff slab.
Imports covered under SRO 655(I)/2006 and SRO 656(I)/2006.
A wide list of over 90 PCT codes, including items like food products, synthetic fibers, and polymers.
o A 4% ACD is applicable to goods under the 20% tariff slab.
o A 6% ACD is imposed on imports under the 30% and higher tariff slabs, as well as those with specific rates. However, some items have been carved out for relief.
2. Exceptions to 2% ACD:
o Select edible oils and fats under PCT codes 1507, 1511, 1512, and 1514.
o CKD units of vehicles (cars, jeeps, and heavy commercial vehicles) exceeding 1,000cc.
3. ACD Exemptions:
o Plant and machinery classified under Chapters 84 and 85 for manufacturing use.
o Imports under Chapter 99, the Fifth Schedule, and previous SROs related to baggage rules, temporary imports, and oil exploration.
o Vehicles in CKD form up to 1,000cc and CBU vehicles up to 850cc.
o Certain imports under specific PCT codes have also been excluded from additional customs duty.
The FBR has directed all customs stations and officials to implement the new structure rigorously. The imposition of additional customs duty reaffirms the government’s resolve to use trade policy as a lever to boost local manufacturing and reduce reliance on non-essential imports, in line with the goals of the Finance Act.