FBR rolls out major tax relief to stabilize sugar prices in Pakistan

Pakistan's Federal Board of Revenue (FBR) has announced sweeping tax exemptions on the import of 0.5 million metric tons (MMT) of white crystalline sugar. The initiative is part of a broader government strategy to ease pressure on consumers and shore up domestic supply ahead of the peak consumption season.

Acting on a directive from the Cabinet Division, the FBR issued three key Statutory Regulatory Orders (SROs) — SRO 1215(I)/2025, SRO 1216(I)/2025, and SRO 1217(I)/2025 — unlocking a robust relief package that significantly reduces the financial burden on importers.

Breakdown of relief measures

• SRO 1215(I)/2025: Complete exemption from customs duties on sugar imports (up to 0.5 MMT) via the Trading Corporation of Pakistan (TCP) or private sector. Imports must meet strict quality control criteria and be completed by September 30.
• SRO 1216(I)/2025: Big reduction in withholding income tax under Section 148, now set at just 0.25% of the declared value.
• SRO 1217(I)/2025: Dramatic cut in sales tax, slashing it from 18% to 0.25% on imports and subsequent supply. Additionally, the 3% minimum value addition tax under the 12th Schedule has been fully waived.

To maintain consistency and transparency, all imports will be subject to inspection by an internationally accredited firm, operating under the Commerce Division’s supervision.

Industry observers expect the measures to make a noticeable impact on sugar affordability, while reinforcing Pakistan’s commitment to fair, accessible commodity trade.