Islamabad, April 8, 2025 – The Ministry of Industries and Production has proposed imposing a 20% Regulatory Duty on LED lighting products as part of the federal budget proposals for the fiscal year 2025–26. The aim of this move is to encourage local manufacturing and reduce reliance on imported LED items.
The proposal was presented during a high-level budget planning meeting chaired by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan. The session focused on policy recommendations for industrial development, taxation reforms, and customs duty adjustments.
Attendees included Secretary of the Ministry of Industries and Production, Saif Anjum, along with representatives from the Engineering Development Board (EDB) and the Small and Medium Enterprises Development Authority (SMEDA). The stakeholders evaluated key concerns facing the sector, including the import-export framework for raw materials and finished goods, as well as the current structure of Customs Duty (CD), Regulatory Duty (RD), and Additional Customs Duty (ACD).
During the discussion, the Ministry emphasized the growing import volume of LED products, citing it as a contributing factor to the pressure on foreign exchange reserves. It proposed the new 20% duty as a tool to level the playing field for local LED manufacturers and attract investment into domestic production.
Haroon Akhtar instructed officials to refine the proposals further and focus on practical measures that can stimulate industrial growth. He also suggested implementing a super tax to bring the national corporate tax regime closer to regional benchmarks.
In alignment with the Prime Minister’s vision, the Special Assistant underlined the need to create a pro-business environment and extend support to local enterprises, particularly SMEs. He directed the Ministry to work with stakeholders to identify and remove bureaucratic and structural barriers affecting industrial expansion.
The Ministry reiterated its commitment to promoting sustainable development and innovation, particularly in energy-efficient technologies like LED lighting. With rising global demand for eco-friendly solutions, the government sees the domestic LED sector as a potential growth driver.
The final decision on the proposed duty will be taken during the upcoming federal budget discussions.