The federal government has restores the standard 18 per cent sales tax on imported sugar. The decision was issued through an official notification.
Earlier, the government had reduced the tax to support sugar supply in the local market. In August 2025, the sales tax on imported sugar was lowered from 18 per cent to just 0.25 per cent.
Officials said the concession was introduced to improve domestic availability. The reduced tax applied only to imports handled by the Trading Corporation of Pakistan (TCP).
The TCP was allowed to import 500,000 tonnes of sugar under the government plan. The aim was to stabilize prices and ensure supply in the local market.
Now, authorities have reversed the decision. The government restores the previous tax structure by withdrawing the reduced rate of 0.25 per cent.
According to the notification, the standard 18 per cent sales tax is now back in effect. The revised rate became applicable from 22 April 2026.
Officials confirmed that the government restores the earlier taxation policy after reviewing market conditions. The move is expected to regulate imports and adjust fiscal balance.
Economic data shows a sharp rise in sugar imports in recent months. According to the Pakistan Bureau of Statistics, imports increased significantly during the current fiscal year.
Between July and January, sugar imports rose by more than 7,900 per cent compared to the previous year. This reflects strong demand and changing market conditions.
In January 2026 alone, imports reached $23.4 million. This marked a monthly increase of over 46 per cent.
Overall food imports also showed an upward trend. The total value crossed $5.5 billion during the seven-month period.
Other imported commodities included tea, palm oil, and dried fruits. These categories also recorded significant import values during the same period.
Officials say the decision to restores the 18 per cent sales tax aims to balance revenue needs and import management. It is also expected to support long-term economic planning.
The government maintains that policy adjustments will continue based on market conditions and national supply requirements.
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