ISLAMABAD, July 9, 2025 – In a decisive move to control inflation and stabilize domestic sugar supply, the Federal Board of Revenue (FBR) has announced comprehensive tax exemptions and concessions on the import of 0.5 million metric tons (MMT) of white crystalline sugar.
Following a directive from the Cabinet Division, the FBR has issued three Statutory Regulatory Orders (SROs) — SRO 1215(I)/2025, SRO 1216(I)/2025, and SRO 1217(I)/2025 — to formalize the tax relief package aimed at addressing supply concerns and rising sugar prices amid peak seasonal demand.
Under SRO 1215(I)/2025, customs duty has been fully exempted on sugar imports up to the quota limit of 0.5 MMT. This exemption applies to imports facilitated either by the Trading Corporation of Pakistan (TCP) or private sector participants, provided they adhere strictly to the quotas, conditions, and quality standards set by the Commerce Division. All such imports must be completed before the deadline of September 30, 2025.
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To provide additional financial relief, SRO 1216(I)/2025 significantly reduces the withholding income tax under Section 148 of the Income Tax Ordinance to just 0.25% of the declared value. This reduced rate is applicable to both public and private sector imports within the specified timeframe and quota.
Furthermore, SRO 1217(I)/2025 lowers the sales tax from 18% to 0.25% on the import and subsequent supply of white crystalline sugar. It also removes the 3% minimum value addition tax that was previously charged under the Twelfth Schedule of the Sales Tax Act, 1990.
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To ensure consistency and maintain quality standards, all sugar imports must be certified by an international inspection agency, under the oversight of the Commerce Division.
Through these regulatory measures, the FBR has adopted a proactive fiscal policy approach to control market volatility, support consumers, and ensure transparent sugar import operations. The initiative is expected to ease financial pressure on the public while safeguarding supply integrity ahead of the peak consumption period.
