Govt unveils new tariff slabs of 5%, 10%, 15% in budget FY26

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By MG News | June 10, 2025 at 06:46 PM GMT+05:00

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June 10, 2025 (MLN): The federal government has introduced a revised tariff regime in the Budget 2025–26, featuring new slabs of 5%, 10%, and 15% while abolishing the earlier 3%, 11%, and 16% rates.

The zero percent (0%) tariff slab, previously applicable on 2,201 tariff lines, has now been extended to cover an additional 916 PCT codes.

Furthermore, customs duty has been reduced on items falling under 2,624 PCT codes.

Additional Customs Duty (ACD) has also seen significant reductions. ACD has been reduced from 2% to 0% on tariff slabs of 0%, 5%, and 10%, covering 4,383 tariff lines, with the exception of 95 lines that remain chargeable at 2%.

For goods under the 15% tariff slab, ACD has been slashed from 4% to 2%.

Similarly, ACD has been cut from 6% to 4% for 2,166 tariff lines under the 20% slab, and from 7% to 6% for 468 lines above the 20% slab.

The regulatory duty (RD) regime has also undergone a major overhaul, with RD completely removed on 554 PCT codes and rates reduced on 595 more.

The maximum rate of RD has been brought down from 90% to 50%.

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