Pakistan cuts customs duties on 7,500 industrial raw materials, machinery items

ISLAMABAD: The government has announced a major reduction in customs tariffs under the Budget 2026-27, providing relief to industries by cutting duties on thousands of raw materials, machinery, and spare parts, according to the Finance Bill.

As per the bill, customs duties on more than 7,500 items used as industrial raw materials, machinery, and components have been revised.

The government has reduced customs duty on 92 tariff lines, cutting rates from 20 percent to 15 percent and 10 percent.

Additional customs duty on 449 tariff lines has been reduced from 6 percent to 4 percent, while on 2,107 tariff lines it has been reduced from 4 percent to 2 percent.

The Finance Bill also abolishes additional customs duty on 569 items completely.

Regulatory duty has been capped at a maximum rate of 20 percent on 359 tariff lines.

The bill further states that raw materials used in cancer treatment have been fully exempted from customs duty.

Customs, additional, and regulatory duties on agricultural machinery have also been abolished.

Additionally, customs duty on special construction vehicles has been reduced from 20 percent to 10 percent.

The measures are aimed at reducing production costs and supporting industrial growth in the upcoming fiscal year.

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