Import of large number of items: RD rate capped at 20pc by FBR

ISLAMABAD: The government has made a major reduction/adjustment on regulatory duties on the import of a large number of items from July 1, 2026.

The Federal Board of Revenue (FBR) has issued an SRO 1064(I)2026 to supersede Notification No. SRO 1152(l)2025 on Tuesday.

The maximum rate of regulatory duty, presently at the rate of 50 percent has been brought down and capped at 20 percent.

READ ALSO: Customs duty rates on 92 tariff lines lowered

On all other items, the existing RD rates of 20 percent and below, standard reduction of 20 percent has been implemented, with the exception on tariff lines where RD rates are 5 percent, 2 percent and one percent exhibiting exports or local production.

The government has proposed a gradual elimination of Regulatory Duties (RDs) under the National Tariff Policy (NTP) 2025-30.

This measure is aimed at simplifying the tariff structure, reducing import barriers and improving competitiveness under the National Tariff Policy 2025-30.

Under the second-year tariff rationalisation plan under the National Tariff Policy (NTP) 2025-30, the government has incorporated adjustments in Regulatory Duty (RD) rates of 1 percent, 2 percent, and 2.5 percent. In line with NTP, RDS are required to be eliminated by 2030 and maximum RD in second year of the implementation will be 20 percent.

Copyright Business Recorder, 2026