Pakistan : FBR extends tax exemptions on 500,000 MT sugar imports till Feb 28, 2026
The Federal Board of Revenue has extended tax concessions on sugar imports in Pakistan until February 28, 2026. Imports of up to 500,000 tonnes through the Trading Corporation of Pakistan will face only 0.25% sales and withholding tax, significantly lowering the usual import tax burden.
The Federal Board of Revenue (FBR) has extended the deadline for tax exemptions and reduced duty rates on sugar imports by the Trading Corporation of Pakistan (TCP) until February 28, 2026, according to official notifications.
The extension applies to the import of up to 500,000 metric tons of sugar, allowing continued exemption from customs duty while maintaining reduced tax rates on the commodity.
Under the revised framework, the sales tax rate has been reduced to 0.25%, down from 18%, and withholding tax under Section 148 will also be charged at 0.25% on the import value.
The FBR has extended the previous deadline from November 30, 2025, enabling importers to continue availing these concessions until the end of February 2026.
Officials said the measure significantly reduces the overall tax burden on sugar imports. Typically, sugar imports are subject to around 47.5% in taxes, including 20% customs duty, 18% General Sales Tax, 3% value-added tax, and 6.5% income tax. Under the current arrangement, most of these levies have been waived, with only about 5% tax remaining applicable.
The concession is applicable to imports carried out by the Commerce Division through TCP or by the private sector, subject to quota allocations and conditions for immediate and future requirements.
The Commerce Division has also been directed to ensure quality verification of imported sugar through an international inspection firm.
The original cutoff date for claiming exemptions was September 30, 2025, and has now been extended to February 28, 2026, under the latest decision.
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Source : Profit Pakistan Today
