Govt reduces regulatory duties on imported food, vehicles, and personal care goods

The federal government has reduced regulatory duties on imported food, vehicles, and personal care goods starting from July 1, 2025. The move aims to benefit international food franchises and importers of vehicles, with over 1,000 items becoming more affordable.

The Federal Board of Revenue (FBR) issued a notification lowering the regulatory duties on hundreds of imported goods falling under the customs duty slabs of 0%, 5% and 10%. While duties on items harmful to local manufacturing remain unchanged, the reduction covers various products, including dog and cat food, cheese, and cosmetics. 

The government also slashed additional customs duties, which had previously been used to generate extra revenue. As part of a broader strategy supported by the International Monetary Fund (IMF) and the World Bank, the government plans to eliminate these duties over the next four to five years. This decision is expected to primarily benefit international food chains and their local consumers.

The biggest reduction was for imported SUVs, with duties slashed by 44%, bringing them to 50%. Several other items, including sunglasses and wristwatches, also saw duty reductions.

The government has imposed a federal excise duty of Rs10 per chicken, while the import duty on live poultry and fresh fish has been halved to 5%. Additionally, the duty on various food items like dates, figs, and avocados was lowered, while the duty on sugar confectionery remained unchanged at 40% to protect local producers.

Other reductions include a 10% cut in cheese and curd imports, a 5% reduction in edible insect and animal-based products, and a 20% cut in the duty on imitation jewellery.

Other key changes include a reduction in the regulatory duty on mobile phone SIM cards from 15% to 12%, and a one-third cut in duties on new cars and mini-vans, now taxed at 10%. 

The government also made cuts to additional customs duties, with items in the 15% tariff slab seeing a 2% reduction, while those under 20% saw a 4% cut. Items in the higher tariff brackets experienced reductions of up to 6%.

The government’s decision follows initial plans to cut or abolish duties on 1,984 tariff lines, aimed at reducing protection for local industries. However, after resistance from the business community, the plan was revised, and several finished goods were excluded from the cuts.