LAHORE: The Government of Pakistan has announced a special Drawback of Local Taxes and Levies (DLTL) regime aimed at facilitating and boosting rice exports from the country.
According to a notification issued by the Ministry of Commerce on January 23, 2026, the decision follows approval granted during the 91st meeting of the Board of Export Development Fund (EDF) held on January 19, 2026.
The new framework is designed to refund local taxes and levies collected from the rice sector, enhancing the competitiveness of Pakistani rice in international markets.
Under the “Drawback of Local Taxes and Levies for Rice Order, 2026,” duty drawback will be admissible on rice export consignments shipped from anywhere in Pakistan between January 23, 2026, and June 30, 2026, subject to full realization of export proceeds in line with State Bank of Pakistan (SBP) regulations.
The government has set two-tier DLTL rates based on rice type and export value. A 9 percent drawback on FOB value will be allowed for exports of Basmati Rice (PCT 1006.3010) and Brown Rice (PCT 1006.2000) where the FOB value is US$750 per metric ton or higher. Meanwhile, a 3 percent drawback will apply to rice exported under PCT 1006.2000, 1006.3090, and 1006.4000 where the FOB value is below US$750 per metric ton.
Only exporters with fully realized export proceeds will be eligible to claim DLTL benefits. The Pakistan Single Window (PSW), in coordination with Customs and SBP, will manage an automated and system-based claim process to ensure prompt disbursement.
The Ministry of Commerce, Federal Board of Revenue (FBR), and SBP retain the right to conduct audits and impose penalties in cases of fraudulent claims. The cut-off date for eligible shipments is June 30, 2026, unless extended through a future notification.
