ISLAMABAD: The Federal Board of Revenue (FBR) has further extended the date for exemption/reduced rates of duties and taxes on the sugar import by the Trading Corporation of Pakistan (TCP) until February 28, 2026.
In this regard, the FBR has issued notifications.
The breakup revealed that the FBR has extended the date for exemption of customs duty on the import of 500,000 metric tons of sugar up to February 28, 2026 and also extended the date of reduced sales tax rate from 18 percent to 0.25 percent and reduced withholding tax up to 0.25 percent on the import of the commodity by the TCP.
After these amendments, the FBR has extended the date from November 30, 2025 to February 28, 2026, for availing tax exemption on the import of the commodity by the TCP.
READ MORE: Sugar import by TCP: Deadline for exemption of duties, taxes extended
The impact is 47 percent exemptions in taxes and duties on sugar imports by the TCP. The sugar imports are typically subject to 47.5 percent taxes comprising 20 percent customs duty, 18 percent General Sales Tax (GST), three percent value-added tax, and 6.5 percent income tax. The government has now exempted state-owned sugar imports from these duties, with only a five percent tax remaining applicable, the official added.
Pursuant to the Cabinet Decision, the withholding tax under section 148 shall be collected at the rate of 0.25 percent of the value of commercial import of while crystalline sugar up to 500,000 metric ton in aggregate, subject to the following conditions:
The import of sugar shall be carried out by the Commerce Division through the TCP or the private sector, subject to conditions, limitations, and quota allotments for immediate and subsequent requirements during the specified period.
The Commerce Division shall ensure quality assurance of the imported sugar through an international inspection firm.
The cut-off date for import of sugar to avail exemption under this notification was September 30, 2025, which has now been extended upto February 28, 2026.
Copyright Business Recorder, 2026
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