Tax discount on sugar imports extended

Published March 20, 2026
This file photo shows a bowl of sugar. — Reuters/File
This file photo shows a bowl of sugar. — Reuters/File

ISLAMABAD: The Federal Board of Revenue (FBR) has extended tax concessions on the import of white crystalline sugar, aiming to stabilise domestic prices and ensure adequate supply in the market.

The FBR has issued SRO527 of 2026 to retain a reduced sales tax rate of 0.25 per cent on imported sugar, compared to the standard 18pc, while also revising the value-added tax structure to continue concessional treatment until February 28, 2026.

This decision is in line with the government previous decision to extend income tax concession on sugar imports, which was notified through SRO455 of 2026 released on March 5. As per this decision, the government allowed imp­orters to pay income tax at a reduced rate of 0.25pc.

In July 2025, the government has introduced the concession scheme. Since then, it has been extended multiple times, first until September 30, 2025, and later to November 30, 2025.

The government has already allowed commercial imports of up to 500,000 tonnes of sugar under specified conditions.

Sugar imports are being facilitated through the Trading Corporation of Pakistan as well as approved private sector entities under the supervision of the commerce ministry. Authorities have made it mandatory for consignments to undergo strict quality verification through internationally recognised inspection firms.

Officials said the extension is intended to maintain price stability and prevent shortages.

Published in Dawn, March 20th, 2026

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