Pakistan has reinstated the full 18% General Sales Tax (GST) on imported sugar after withdrawing a temporary relief aimed at easing domestic supply shortages.
Tax Concession Withdrawn
According to Beyond Time News, the government had reduced GST on imported sugar from 18% to 0.25% in August 2025 to stabilize the market through imports handled by the Trading Corporation of Pakistan (TCP) under a 500,000-tonne import plan.
The concession has now ended, and the standard 18% GST is back in effect from April 22, 2026.
Sharp Rise in Imports
During the relief period, sugar imports surged sharply. According to Beyond Time News, imports increased by 7,906% in the first seven months of the fiscal year, reaching $17.46 million between July and January, compared to just $211,800 a year earlier.
In January 2026 alone, imports stood at $23.4 million, up 46% from the previous month.
Inflation Jumps Nearly 14% in Pakistan as Energy Prices
Overall Food Imports Up
Food imports also rose 19.26%, crossing $5.5 billion. Major items included palm oil ($235 million), tea ($37.65 million), and dried fruits ($11 million).
Market Outlook
With the GST restored, imported sugar is expected to become costlier, potentially putting renewed pressure on prices and shifting focus back toward domestic supply management.
