Islamabad, July 2, 2025: The Federal Board of Revenue (FBR) has officially issued SRO.1151(I)/2025 and SRO.1152(I)/2025, confirming a major tariff reform from July 1, 2025, under its customs tariff rationalization plan. These notifications aim to cut regulatory duties (RDs) and additional customs duties (ACDs) on over 1,000 imported items.
Under SRO.1152(I)/2025, the regulatory duty is reduced or eliminated on 1,022 items, especially raw materials and intermediate goods. Additionally, SRO.1151(I)/2025 details a phased cut in ACDs, primarily affecting higher duty slabs and vehicles in CKD condition above 1,000cc.
Key Highlights:
- Overall import tariffs to drop from 20.19% to 9.70% over five years.
- Customs duty slabs to be reduced to four tiers: 0%, 5%, 10%, and 15%.
- RDs to be eliminated entirely on 554 raw/intermediate goods.
- ACDs to be fully withdrawn over 7,500 items.
- Auto sector ACDs to be phased out starting July 2026.
- Maximum RD rate cut from 90% to 50%.
Import exemptions under the new ACD regime include:
- Plant & machinery (Chapter 84 and 85)
- Imports under Chapter 99 and Fifth Schedule
- Specific vehicle categories including CKD under 1,000cc and CBU under 850cc
- Offshore E&P equipment under SRO.678(I)/2004
Similarly, RD exemptions apply to:
- Imports under SRO.678(I)/2004
- Grain/non-grain electrical steel sheets
- Special non-alloy steel bars and rods
- Auto parts input materials under SRO.655(I)/2006
From July 2025, a 5% RD will apply on CKD/SKD kits for home appliances not otherwise specified.
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These reforms are part of Pakistan’s strategy to boost industrial growth, reduce costs for manufacturers, and align with WTO trade norms, ensuring long-term competitiveness.
