Importers who search for the Pakistan customs tariff usually want one number: how much duty applies to their product. The tariff document gives only part of that answer. This guide explains what the 2026-27 tariff contains, where the other charges come from, and how they combine into the cash an importer pays at the port.
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Where to find the tariff
The Federal Board of Revenue (FBR) publishes the Pakistan Customs Tariff for F.Y. 2026-27 as a PDF on its Customs Tariff page. The same page carries the Fifth Schedule to the Customs Act, 1969, updated to 30 June 2026, which lists concessionary rates for plant, machinery and other goods subject to conditions. Earlier years are published alongside, which is useful for checking what changed.
The tariff is organised by Harmonized System chapter. Each row gives the Pakistan Customs Tariff (PCT) code, a description and the rate. Descriptions are nested: a line marked “Other” belongs to the heading above it, so the full meaning of a code depends on the lines that precede it.
What the tariff does not show
The 2026-27 tariff has a single rate column, headed customs duty (CD). It does not show additional customs duty, regulatory duty, sales tax or advance income tax. An importer who reads only the tariff will understate the cost of the import, often by a large margin. Four other charges can apply, and each comes from a different source.
| Charge | Where it is set | What it is charged on |
|---|---|---|
| Customs duty (CD) | Pakistan Customs Tariff, by PCT code | Customs value, determined under section 25 or 25A of the Customs Act, 1969 |
| Additional customs duty (ACD) | S.R.O. 1063(I)/2026 of 30 June 2026, effective 1 July 2026 | The same customs value |
| Regulatory duty (RD) | S.R.O. 1064(I)/2026 of 30 June 2026, by PCT code | The same customs value |
| Sales tax | Sales Tax Act, 1990, section 3: 18% on imported goods | Customs value plus customs duties plus federal excise duty |
| Advance income tax | Income Tax Ordinance, 2001, section 148 | Import value increased by customs duty, sales tax and federal excise duty |
Sources: S.R.O. 1063(I)/2026 and S.R.O. 1064(I)/2026, Federal Board of Revenue; Sales Tax Act, 1990, sections 2(46)(d) and 3(1)(b); Income Tax Ordinance, 2001, section 148.
How each additional charge works
Additional customs duty
S.R.O. 1063(I)/2026 levies additional customs duty at 2% on goods in the 20% customs duty slab, with a short list of exceptions charged at 4%, and on a long list of named PCT codes. It levies 4% on goods in the 25% slab and above and in the specific-rate slabs, with exceptions at 6% and 2%. The notification states that the levy does not apply to imports of plant and machinery used in manufacturing or production, classifiable under Chapters 84 and 85 of the First Schedule, among other exclusions such as imports under Chapter 99 and most of the Fifth Schedule. Whether a given import counts as plant and machinery for production is a question of fact, and it can be contested by Customs.
Regulatory duty
Regulatory duty applies only to the PCT codes listed in the table in S.R.O. 1064(I)/2026, at the rate shown against each code. Products that are not in the table carry no regulatory duty. The notification excludes imports under Chapter 99, the Fifth Schedule (with listed exceptions) and the temporary importation scheme, among others.
Sales tax and value addition tax
Sales tax on imported goods is 18%, charged on the customs value plus customs duties plus federal excise duty. A further 3% value addition tax is collected at import under the Twelfth Schedule to the Sales Tax Act, 1990, on all taxable imports except listed categories. One excluded category is plant, machinery and equipment in Chapters 84 and 85 imported by a manufacturer for in-house installation or use. Value addition tax paid at import counts as input tax and can be deducted from output tax by a registered person, subject to the limits in the Act.
Advance income tax
Customs collects advance income tax from importers at the same time as customs duty. The rate depends on the Part of the Twelfth Schedule to the Income Tax Ordinance in which the goods fall: 1% for Part I, 2% for Part II (3.5% for commercial importers) and 5.5% for Part III (6% for commercial importers). Goods not specifically named in Part I or II fall in Part III. Section 148 treats the tax as an advance payment against the importer’s liability for the year.
A worked example: three-phase electric motors
The example uses PCT line 8501.5290, AC motors, multi-phase, of an output exceeding 750 W but not exceeding 75 kW, “Other”. The 2026-27 tariff sets customs duty at 15%. The 2025-26 tariff set it at 20%. Additional customs duty is 2%, because the code is named in S.R.O. 1063(I)/2026. The code does not appear in the regulatory duty table, so regulatory duty is nil. The code is not named in Part I or Part II of the Twelfth Schedule to the Income Tax Ordinance, so it falls in Part III.
All figures are per PKR 1,000,000 of customs value, so no exchange rate is needed. The example is illustrative. It assumes the stated customs value, no concessionary notification, and that the importer is either a manufacturer importing for its own plant or a trader.
| Step | Manufacturer, own plant | Trader |
|---|---|---|
| Customs duty, 15% | 150,000 | 150,000 |
| Additional customs duty, 2% | 0 (plant and machinery exclusion) | 20,000 |
| Regulatory duty | 0 | 0 |
| Sales tax, 18% | 207,000 | 210,600 |
| Value addition tax, 3% | 0 (Chapter 84 and 85 plant exclusion) | 35,100 |
| Advance income tax, Part III | 74,635 (5.5%) | 82,836 (6%) |
| Cash payable at the port | 431,635 | 498,536 |
For the manufacturer, sales tax is charged on 1,150,000 (customs value plus customs duty) and advance income tax on 1,357,000 (that figure plus sales tax). For the trader, sales tax is charged on 1,170,000 and advance income tax on 1,380,600. The table applies value addition tax to the same base as sales tax and leaves it out of the advance tax base; the base for each should be confirmed for the importer’s own case.
Three points follow from the example.
- The importer’s category matters as much as the tariff line. The same motor costs roughly 67,000 more per PKR 1,000,000 in cash for the trader, because the trader pays additional customs duty, value addition tax and the higher advance tax rate.
- The cash payable is not the cost of the goods. A registered manufacturer can usually claim sales tax as input tax, and advance income tax is adjustable against its final tax liability. The economic cost to the manufacturer is therefore closer to customs value plus customs duty. The cash required at the port is nevertheless much higher and has to be financed.
- The 2026-27 rate cut is material. At the 2025-26 customs duty of 20%, and with the other charges unchanged, the manufacturer’s cash at the port would have been about 493,880 per PKR 1,000,000, so the cut saves about 62,000. That comparison assumes the other charges and exclusions were the same in 2025-26.
Common mistakes
- Using the wrong “Other” line. In the same heading, 8501.5210 (submersible stainless steel motors) carries 10%, 8501.5220 (sewing machine clutch motors) 0% and 8501.5290 (other) 15%. Classification decides the rate.
- Using last year’s tariff. Rates change each July. Additional and regulatory duty notifications are reissued every 30 June and supersede the previous year’s.
- Reading only the customs duty column. The other four charges can add more than the duty itself.
- Treating recoverable taxes as cost, or the reverse. Whether sales tax and advance income tax can be recovered depends on the importer’s registration and activity.
- Assuming an exemption applies. Exclusions for plant and machinery, the Fifth Schedule and special schemes carry conditions, and Customs can challenge a claim.
Next steps for an importer
- Identify the PCT code of each product, using the heading text and the lines above it.
- Read customs duty from the 2026-27 tariff, then check the additional customs duty and regulatory duty notifications for the same code.
- Check whether the Fifth Schedule or another notification offers a concessionary rate, and whether its conditions can be met.
- Work out the importer’s category for sales tax, value addition tax and advance income tax.
- Price the landed cost before committing to a purchase order, and confirm the result with a licensed customs agent. For how declarations are filed, see our guide to import duties and taxes in Pakistan.
This guide is an orientation based on official sources, not legal or customs advice. Rates are as notified on 30 June 2026 and effective 1 July 2026. Confirm the rate for your product before shipping.
How PIVRA can help
PIVRA can help you work out what applies to your product: classification review, a landed-cost model for your actual import values, and identification of exclusions and concessions you may qualify for. Engagements are quoted in writing after a free scoping exchange. Request a quote or see our tax and customs support.
Sources
- Federal Board of Revenue, Customs Tariff page: Pakistan Customs Tariff F.Y. 2026-27 and F.Y. 2025-26; Fifth Schedule to the Customs Act, 1969, updated 30 June 2026
- S.R.O. 1063(I)/2026, additional customs duty, 30 June 2026
- S.R.O. 1064(I)/2026, regulatory duty, 30 June 2026
- Sales Tax Act, 1990, sections 2(46), 3 and the Twelfth Schedule (as amended by the Finance Act, 2026)
- Income Tax Ordinance, 2001, section 148, Part II of the First Schedule and the Twelfth Schedule; Finance Act, 2026