The Government has restored the standard 18 percent general sales tax on imported sugar. This decision cancels a previously reduced tax rate. The earlier concession was introduced to manage supply and price stability in the local market.
According to official notifications, the reduced sales tax of 0.25 percent has now been withdrawn. The revised 18 percent GST became effective from April 22, 2026.
The Government had introduced the tax relief in August 2025. It was applied to sugar imports under a plan approved through the Trading Corporation of Pakistan. The goal was to ensure sufficient supply in the domestic market.
Under the earlier policy, 500,000 tons of sugar were allowed for import at a lower tax rate. This step was taken to address shortages and rising prices across the country.
However, the latest decision shows a clear policy change by the Government. Authorities are now moving away from tax relief and returning to the standard tax structure.
The decision comes after a sharp increase in sugar imports during the current fiscal year. Data from the Pakistan Bureau of Statistics shows imports rose significantly.
Sugar imports increased by more than 7,900 percent in the first seven months of the fiscal year. The total value reached over $17.46 million, compared to just $211,800 in the same period last year.
Imports also continued to rise in January 2026. During that month, sugar imports reached $23.4 million, showing strong import activity.
Officials believe the earlier tax concession contributed to this surge. Lower import costs encouraged higher purchasing from international markets.
At the same time, Pakistan’s overall food import bill has also increased. Between July and January, food imports rose by 19.26 percent, crossing $5.5 billion.
Key imports included palm oil, tea, and dried fruits. These rising imports continue to put pressure on the country’s external financial balance.
The Government decision to restore the 18 percent GST signals a shift in economic priorities. Authorities appear to be focusing more on revenue generation and fiscal stability.
In other related news also read Government Proposes New Taxes, Higher GST, And Exemptions
The policy change is expected to normalize import taxation and reduce reliance on temporary concessions. It also reflects efforts to strengthen overall financial management.
