Summary Pakistan extends tax relief on sugar imports till Feb 2026, cutting total taxes from 47% to 5% for TCP imports, with a 5 lakh ton quota under a conditional system.
ISLAMABAD (Dunya News) - 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.
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.
