Budget 2026-27: TPU to address classification disputes, revise PCT headings
ISLAMABAD: The Tax Policy Unit (TPU) of the Ministry of Finance will address customs classification disputes and revise Pakistan Customs Tariff (PCT) headings for imported goods in the upcoming 2026-27 budget to ensure the accurate and uniform classification of identical items.
In his budget proposals for 2026-27, renowned businessman Isphanyar Bhandara shared his concerns overthe wrong classification of imported goods by applying the wrong Pakistan Customs Tariff headings. The alleged corruption and abuse of power among the customs department can effectively be checked through policy interventions like the customs tariff rationalization plan.
He shared that the tariff rationalisation is a big change, and a permanent implementation committee must monitor the impact of tariff rationalisation on domestic industries.
READ MORE: NTP 2025–30: All tariff rationalisation requests to be routed through TPB first
He anticipated that the FBR must work out the revenue impact to be calculated on revenue, considering all factors of customs tariff rationalisation; ie, increased demand, economic growth, transparency, decrease in under-invoicing, smuggling, and compliance cost.
He appreciated that there is an institutional shift of taking away the import tariff policy from the Federal Board of Revenue (FBR) to the Ministry of Commerce. Tariff Policy Board is a recommendatory body to the Federal Cabinet, which has taken the final decision on the Finance Bill (2026-27).
When contacted, he informed Business Recorder that the customs department frequently misuses powers for the assessment of duties and taxes on imported items.
Copyright Business Recorder, 2026
Comments