The government has reduced taxes and duties on over 7,000 imported items following the implementation of the Finance Act 2025, which took effect on July 1.
As per an official notification issued by the Federal Board of Revenue (FBR), the new taxation regime reduces import duties on a vast array of necessities as well as luxury goods, ranging from dairy items to cosmetics, fruits, cars, and even raw materials needed for industries.
Major relief on food and dairy products
According to the new framework, the duty on milk, yogurt, butter, cheese, and fruits has come down significantly. For example, powder milk and yogurt imports will now have a lower duty of 20%. Imports of cheese will have a duty of 40%, whereas honey will be taxed at 24%.
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Fresh fruits such as apples, peaches, papayas, guavas, avocados, and pineapples have also seen duty reductions ranging from 20% to 45%. Canned and frozen vegetables, including dried variants, now come with just a 5% duty tag.
Cosmetic and personal care products get cheaper
In a welcome development for the beauty sector, the FBR has reduced the taxes levied on imported cosmetic products, decreasing the duty on makeup products to 44% from 55%. Imported sunscreen, sunblock, hair care products, shaving creams, face washes, and lotions have all experienced tax reductions of between 10% and 15%.
Beauty salons are most likely to gain the most from this relief in taxation, since cosmetic raw materials have also decreased in price under the Finance Act 2025.
Mobile phones, cars, and livestock also benefit
Regulatory duty on mobile SIM cards has been cut to 12% from 15%, and new vehicles and mini-vans have been slashed from one-third to 10%. The big boost to the poultry and livestock industry comes with breeding animals, fish, and birds’ eggs now being subject to only a 5% duty.
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Imported SUVs will now face a 50% duty — down 44% from the previous rate — marking one of the most significant cuts in the notification.
Relief for industries and agriculture
The administration also made efforts to encourage the industrial and farming industries by slashing duties on raw materials. Products like imported cocoa powder, pasta, cornflakes, wheat flour, maize, carbon dioxide, and metals such as magnesium and nickel have had their duties slashed as low as 2.5%.
Foreign varnish, enamel paints, and lacquer products will also now be taxed at only 5%, which could cut construction and maintenance expenses.
