In a move to stabilize sugar supply, the Federal Board of Revenue (FBR) has announced sweeping tax relaxations on the import of 500,000 metric tons of white crystalline sugar. These incentives, available to both the Trading Corporation of Pakistan (TCP) and private importers, include:

📌 Key Exemptions and Reduced Rates:

• Customs Duty: Fully waived on the designated volume of sugar.
• Sales Tax: Slashed from 18% to a nominal 0.25%.
• Withholding Tax: Lowered to just 0.25% under Section 148 of the Income Tax Ordinance.
• Value Added Tax (VAT): A 3% minimum VAT on import and resale has also been exempted.

The FBR rolled out these changes through SROs 1215(I)/2025, 1216(I)/2025, and 1217(I)/2025 issued on July 9. These relaxations follow a Cabinet directive aimed at addressing immediate and anticipated shortages in the local market.

📝 Conditions to Qualify:

• Import Window: Benefits apply only to sugar imports completed before September 30, 2025.
• Responsible Bodies: Imports must be managed by the Commerce Division through TCP or approved private sector importers.
• Quality Assurance: All consignments must undergo inspection by an accredited international firm.

These measures are expected to improve domestic availability and curb market instability caused by rising retail sugar prices.