The Federal Board of Revenue (FBR) has introduced a major tax relief on the import of 500,000 metric tons of white crystalline sugar, aiming to bring down market prices. As part of the decision, customs duty has been fully exempted, while sales tax has been reduced from 18% to only 0.25%. The withholding tax on these imports is also down to 0.25%, making it easier and cheaper for both public and private importers.
This relief comes through three separate statutory regulatory orders (SROs): SRO 1215, SRO 1216, and SRO 1217 of 2025, all issued on Wednesday. The FBR has also waived the 3% minimum value added tax (VAT), which was previously applied under the Twelfth Schedule of the Sales Tax Act, 1990. These exemptions are part of the government’s broader efforts to stabilize sugar supply and control inflation during a time of rising food prices.
However, the tax exemptions are conditional. The sugar must be imported either by the Trading Corporation of Pakistan (TCP) or approved private sector importers, under the supervision of the Commerce Division. Only a total of 500,000 metric tons is eligible under this facility. To ensure safety and quality, international inspection firms will verify the standard of imported sugar. The deadline to benefit from this policy is set as September 30, 2025.
The decision follows growing concerns about sugar hoarding and rising domestic prices, which have burdened consumers in recent months. The government hopes the reduced cost of importing sugar will ease local market prices and ensure adequate supply ahead of seasonal demand, especially during late summer and early fall when sugar consumption increases.
This move is part of Pakistan’s ongoing economic relief strategy, aimed at protecting consumers, improving supply chains, and reducing inflationary pressure. Officials believe the tax relief on sugar imports will offer timely support to the market, while maintaining transparency and quality checks throughout the process.