FBR extends tax concessions on sugar imports to stabilise domestic prices

ISLAMABAD: The Federal Board of Revenue (FBR) has extended tax concessions on the import of white crystalline sugar in a bid to stabilise domestic prices and ensure adequate supply in the local market.

The FBR has issued SRO527 of 2026, retaining a reduced sales tax rate of 0.25 per cent on imported sugar, significantly lower than the standard rate of 18 per cent. The notification also revises the value-added tax structure to continue the concessional treatment until February 28, 2026.

Income tax concession also extended

The latest move is in line with the government's earlier decision to extend income tax concessions on sugar imports, which was notified through SRO455 of 2026, released on March 5. Under that decision, the government allowed importers to pay income tax at a reduced rate of 0.25 per cent.

Concession scheme introduced in July 2025

The concession scheme was first introduced by the government in July 2025. Since its inception, it has been extended multiple times — first until September 30, 2025, and subsequently until November 30, 2025.

The government has already permitted commercial imports of up to 500,000 tonnes of sugar under specified conditions as part of its efforts to keep sugar prices in check and maintain sufficient supply in the domestic market.

The repeated extensions of the concessional tax regime reflect the government's continued reliance on sugar imports as a tool to manage price stability, with the reduced sales tax and income tax rates aimed at lowering the cost of importing sugar and, in turn, keeping retail prices affordable for consumers.