Govt to Cut Import Duties on Semi-Finished, Finished Goods in FY26 Budget

The overall import duty structure on semi-finished and finished goods would be reduced, including a cut in the import tariff slabs in the upcoming budget (2025-26). Sources told ProPakistani that the reduction of Regulatory Duties, Additional Customs Duties, and import tariffs is expected in the coming budget (2025-26). Nearly 7 percent additional customs duty on specific goods will be abolished from July 1, 2025.  Moreover, a 2 percent additional customs duty on the zero-tariff slab will also be abolished from the next fiscal year. A one percent reduction is expected on the import of the 3 percent tariff slab to a 2 percent duty slab. According to sources, the weighted average applied tariffs will be reduced from the current 10.6 percent to just around 6 percent over five years, starting in July this year, they added. This 43 percent reduction in tariffs will completely open the economy to foreign competition. Under the new National Tariff Policy, the weighted average tariffs will be reduced to 7.4 percent by 2030. To cut these further to around 6 percent, the government will lower tariff protection available to the automobile sector through the Auto Industry Development and Export Policy (AIDEP) 2026-30 from July next year.