Islamabad, July 10, 2025: The federal authorities have reduced sales and withholding tax on sugar import to help curb inflation and maintain local availability ahead of the high-demand season.
As per two separate notices released on Tuesday by the Federal Board of Revenue (FBR), the administration has lowered the sales tax on importing and selling up to 500,000 metric tons of white crystalline sugar to 0.25% from 18%, and also removed the 3% minimum value-added tax.
Simultaneously, the withholding levy on such commercial imports has been decreased to 0.25%, down from much higher customary rates.
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This concession, valid till September 30, covers imports carried out by the state-run Trading Corporation of Pakistan or by private importers, as long as they stay within the Commerce Division-sanctioned limits and comply with global quality criteria confirmed via third-party verification.
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The decision, recorded under Cabinet Case No. 432/Rule-19/2025/615, is intended to ease food costs and stabilize the market as the nation faces supply issues and fluctuating global commodity prices.
The Commerce Division will supervise the execution, including the allotment of import limits and quality checks, according to the notices signed by Dr. Najeeb Ahmad, Member Inland Revenue Policy.
