Govt waives tax, slashes duties on sugar imports

July 09, 2025 (MLN): The federal government has slashed sales and withholding taxes on sugar imports to ease inflationary pressure and ensure domestic supply ahead of peak consumption season.

According to two separate notifications issued Tuesday by the Federal Board of Revenue (FBR), the government has reduced the sales tax on the import and sale of up to 500,000 metric tons of white crystalline sugar to 0.25% from 18%, and waived the 3% minimum value added tax.

In a parallel move, the withholding tax on these commercial imports has also been cut to 0.25%, from rates that typically range much higher.

The relief, effective until September 30, applies to imports facilitated through the state-run Trading Corporation of Pakistan or by private entities, provided they operate within Commerce Division-approved quotas and meet international quality standards verified through third-party inspection.

The measures, under Cabinet Case No. 432/Rule-19/2025/615, aim to rein in food prices and support market stability as the country grapples with supply constraints and volatile global commodity costs.

The Commerce Division will oversee implementation, including quota allocations and quality assurance, according to the notifications signed by Dr. Najeeb Ahmad, Member Inland Revenue Policy.

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