The federal government has announced significant reductions in customs duties on thousands of industrial raw materials, machinery and spare parts as part of the Budget 2026-27, aiming to lower production costs and boost industrial imports activity.
According to the Finance Bill, customs tariffs on more than 7,500 items used by various industries have been revised. The measures are intended to improve the business environment, encourage investment and enhance the competitiveness of domestic manufacturers.
Under the new tariff structure, customs duties on 92 tariff lines have been reduced from 20 percent to either 15 percent or 10 percent. The government has also lowered additional customs duty on 449 tariff lines from 6 percent to 4 percent.
Furthermore, additional customs duty on 2,107 tariff lines has been cut from 4 percent to 2 percent, while duties on 569 items have been abolished altogether.
The Finance Bill also introduces changes to regulatory duties. The maximum regulatory duty has been capped at 20 percent on 359 tariff lines, a move expected to provide greater predictability for businesses that rely on imported inputs and machinery.
In a major relief measure for the healthcare sector, the government has granted a complete customs duty exemption on raw materials used in cancer treatment. The step is expected to support the availability and affordability of essential medical products.
The agriculture sector has also received support through the removal of customs, additional customs and regulatory duties on agricultural machinery. Officials believe the measure will help farmers access modern equipment at lower costs and improve agricultural productivity.
Meanwhile, customs duty on special construction vehicles has been reduced from 20 percent to 10 percent, providing relief to the construction and infrastructure sectors.
The government says the tariff reforms are part of a broader strategy to promote industrial growth, reduce the cost of doing business and strengthen economic activity during the upcoming fiscal year.
Industry stakeholders are expected to assess the impact of the measures on manufacturing costs and investment decisions in the coming months.