FBR revises customs duty structure for imported agricultural tractors under Finance Bill 2026
The Federal Board of Revenue (FBR) has notified revised customs duty rates on the import of agricultural tractors through the Finance Bill 2026, with the updated rates set to take effect from July 1, 2026.
According to the revised Fifth Schedule of the Customs Act, the new tariff structure introduces two categories of agricultural tractors based on engine capacity, bringing changes to the applicable customs duties.
Under the updated schedule, agricultural tractors equipped with engines exceeding 26 kilowatts (kW) but not exceeding 75kW will attract a customs duty of 15 percent. This category covers tractors classified under PCT codes 8701.9220 and 8701.9320.
Meanwhile, agricultural tractors falling outside this engine range will be subject to a lower customs duty of 10 percent. These tractors are classified under PCT codes 8701.9100, 8701.9400, and 8701.9500.
The revised duty structure has been incorporated into Part V(C) relating to the import of agricultural tractors under the Fifth Schedule of the Customs Act. The changes form part of the government’s broader fiscal measures announced through the Finance Bill 2026.
The updated tariff framework is expected to provide a clear classification mechanism for importers dealing with agricultural machinery. The customs duty rates will be applicable from the start of the new fiscal year beginning July 1, 2026.
Importers and stakeholders in the agricultural machinery sector will need to align their import plans with the revised duty structure to ensure compliance with the updated customs provisions.
The FBR’s notification outlines separate rates depending on the engine capacity and classification codes of the imported tractors, replacing the previous arrangements under the Fifth Schedule. These measures are aimed at streamlining the tariff regime for agricultural equipment imports and ensuring uniform application of customs duties across different tractor categories.
