Govt cuts customs duties on industrial raw materials in Budget 2026-27

ISLAMABAD: The government has announced major cuts in customs tariffs in the Budget 2026-27 to help industries reduce costs and boost production.

According to the Finance Bill, customs duties on more than 7,500 items used as industrial raw materials, machinery, spare parts, and components have been revised.

The government has reduced customs duty on 92 tariff categories, lowering rates from 20 percent to 15 percent and 10 percent. Additional customs duty on 449 tariff lines has been cut from 6 percent to 4 percent, while duties on 2,107 tariff lines have been reduced from 4 percent to 2 percent.

The Finance Bill also removes additional customs duty completely on 569 items. In addition, regulatory duty has been capped at a maximum of 20 percent on 359 tariff lines.

To support the healthcare sector, the government has fully exempted raw materials used in cancer treatment from customs duty.

The budget also provides relief to the agriculture sector by abolishing customs, additional, and regulatory duties on agricultural machinery.

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

The government says these measures are aimed at lowering production costs, encouraging investment, and supporting industrial growth during the next fiscal year.