Pakistan extends sugar import tax relief until February 2026

ISLAMABAD: The government has decided to extend the duty and tax exemption on sugar imports, pushing the deadline to February 28, 2026.

The Federal Board of Revenue (FBR) has issued a notification confirming the extension.

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Reports indicate that the sales tax on sugar imports has been reduced from 18% to just 0.25%, while the withholding tax has also been lowered to 0.25%.

This tax relief applies exclusively to sugar imported through the Trading Corporation of Pakistan (TCP).

The government clarified that the overall tax rate, previously around 47%, will now be reduced to approximately 5%. Under the cabinet’s decision, a lower tax rate is applicable to white crystal sugar imports, with TCP imports capped at a limit of 5 lakh metric tons.

Sugar imports are allowed either through TCP or the private sector under a quota system.

The original deadline for this tax relief was September 30, 2025, which has now been extended to support supply and manage prices.