New mechanism takes effect from July 1, 2026 under SRO 1072(I)/2026
ISLAMABAD: The Federal Board of Revenue (FBR) has notified the procedure for the collection of Special Excise Duty (SED) on imported goods through SRO 1072(I)/2026, with the new mechanism taking effect from July 1, 2026.
The notification has been issued in exercise of the powers conferred under sub-section (3B) of Section 3 of the Federal Excise Act, 2005.
According to the notification, the Special Excise Duty leviable on goods specified in Table 1A of the First Schedule to the Federal Excise Act, 2005, will be collected through the customs clearance process in the case of imported goods.
The FBR has prescribed that, for imports into Pakistan, the Special Excise Duty shall be levied and collected in the same manner and at the same time as customs duty payable under the Customs Act, 1969.
The notification further states that all relevant provisions of the Customs Act, 1969, including Section 31A, will apply mutatis mutandis for the assessment, collection and recovery of the Special Excise Duty.
By aligning the collection mechanism with the existing customs duty framework, the FBR aims to streamline tax administration and ensure efficient collection of the newly imposed levy at the import stage.
The notification will come into force from July 1, 2026, making the Special Excise Duty applicable on notified imported goods in accordance with the provisions of the Federal Excise Act, 2005.
