Reduced import duties on sugar confectionery and white chocolate are expected to lower costs, boost market competition, and increase consumer demand across Pakistan.
The Federal Board of Revenue (FBR) has announced a major reduction in the regulatory duty (RD) imposed on imported candies and sweets, cutting the rate by 50 percent under the tariff schedule for the fiscal year 2026-27.
The revised customs duty structure came into effect on July 1, 2026, following the issuance of a new Statutory Regulatory Order (SRO).
According to the updated tariff schedule, the regulatory duty on imported sugar confectionery products, including white chocolate that does not contain cocoa, under PCT code 17.04, has been reduced from 40 percent to 20 percent.
The move is part of the government’s broader tariff reforms aimed at rationalizing import duties and improving market competitiveness.
Sugar confectionery products include a wide range of sweet treats commonly consumed as snacks, such as candies, lollipops, toffees, chewing sweets, and other sugar-based products.
These items are manufactured using sugar, syrups, and various flavoring ingredients and are widely popular among children and young consumers.
The latest SRO revises the regulatory duty rates applicable to several imported confectionery products categorized under the Pakistan Customs Tariff (PCT).
Industry observers believe the reduction could lower the cost of imported sweets and create greater competition within the confectionery market.
Market analysts suggest that demand for imported candies and sweets in Pakistan has been gradually increasing, driven by changing consumer preferences, expanding retail networks, and the growing popularity of international confectionery brands.
The reduction in regulatory duty is expected to make imported products more affordable, potentially encouraging higher sales volumes in supermarkets, convenience stores, and online retail channels.
The duty cut may also benefit distributors and importers by reducing overall import costs and improving profit margins. Consumers could see a wider variety of confectionery products becoming available at more competitive prices in the coming months.
However, the move may intensify competition for local confectionery manufacturers, who could face pressure from lower-priced imported alternatives.
The overall impact on the market will depend on exchange rate trends, import volumes, and the extent to which importers pass on cost savings to consumers.