Tax discount on sugar imports extended

Published
0
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

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Emergency matters

Emergency matters

If this new technocratic setup proves to be successful and efficient, it might just end up increasing centralisation of decision-making.

Editorial

Burnt bridges
Updated 20 Oct, 2026

Burnt bridges

If PPP wants the decision reversed, it should convince its ally in Islamabad, not ask the opposition to be ‘positive’.
Toll on trade
20 Oct, 2026

Toll on trade

A YEAR after Islamabad severed commercial ties with Kabul over security concerns, the border trade disruption is...
French protests
20 Oct, 2026

French protests

SEVERAL European states have witnessed mass protests over the past few days, mostly focusing on socioeconomic...
Eating grass for AI
Updated 19 Oct, 2026

Eating grass for AI

As dependence on AI grows, the bill could reach hundreds of millions of dollars by the end of the decade.
Climate exodus
Updated 19 Oct, 2026

Climate exodus

Climate displacement could then become another source of instability unless governments prepare for it together.
Settler terrorism
19 Oct, 2026

Settler terrorism

ISRAEL’S genocidal violence in occupied Gaza has understandably captured the world’s attention. Yet another...