The Federal Board of Revenue (FBR) has extended tax concessions on the import of white crystalline sugar in an effort to stabilize domestic prices and ensure sufficient supply in the local market.
According to the latest notification, SRO527 of 2026, the FBR has maintained a significantly reduced sales tax rate of 0.25 percent on imported sugar, compared to the standard rate of 18 percent. This move aims to lower the cost of sugar imports and provide relief to consumers facing rising food prices.
In addition to sales tax relief, the government has also extended income tax concessions on sugar imports. Under SRO455 of 2026, importers are allowed to pay income tax at a reduced rate of 0.25 percent. This combined tax relief is expected to make imports more affordable and improve supply in the domestic market.
The concession scheme was initially introduced in July 2025 and has been extended multiple times due to ongoing concerns about sugar price volatility. The government had first extended the scheme until September 30, 2025, and later until November 30, 2025, before the latest extension.
To further support price stability, the government has permitted the commercial import of up to 500,000 tonnes of sugar under specific conditions. This decision reflects a broader strategy to manage inflation and ensure the availability of essential commodities.
Experts believe that these continued concessions highlight the government’s reliance on imports as a tool to control prices in the local market. By reducing both sales tax and income tax, authorities aim to keep sugar prices affordable for consumers while maintaining steady supply levels.
However, some analysts caution that long-term reliance on imports may have implications for local producers. Balancing domestic production with imports will be crucial for sustainable market stability.
In conclusion, the extension of tax concessions on sugar imports demonstrates the government’s commitment to controlling inflation and protecting consumers from rising food costs, especially during periods of economic pressure.
