KARACHI: The government of Pakistan has extended its tax relief on sugar imports until February 28, 2026, aiming to stabilize supply and keep prices under control.
According to a notification issued by the Federal Board of Revenue, significant reductions in import taxes will continue. The sales tax on imported sugar has been slashed from 18% to just 0.25%, while the withholding tax has also been brought down to 0.25%.
This concession applies specifically to imports handled by the Trading Corporation of Pakistan. Overall, the tax burden on sugar imports, which previously stood at around 47%, has now been reduced to roughly 5%.
The policy covers white refined sugar imports, with a cap of 500,000 metric tons through TCP. Additionally, imports can still take place via the private sector under a quota system.
Initially set to expire on September 30, 2025, the relief package has been extended to ensure sufficient availability of sugar in the market and to help manage rising prices.
