FBR Starts Work on Customs Budget 2026–27, Invites Tariff Change Proposals
ISLAMABAD, 2025:
The Federal Board of Revenue (FBR) has officially kicked off preparations for the customs budget for FY 2026–27 and has invited budget proposals from customs field offices, trade bodies, and the business community. The main aim is to further rationalise tariffs and make the import–export system more balanced and business-friendly.
According to an official communication issued by FBR, stakeholders can suggest changes related to:
• Import duty slabs
• Reduction or abolition of customs duties
• Additional Customs Duties (ACDs)
• Regulatory Duties (RDs)
This move shows that the government is once again looking for input from the private sector before finalising customs policies for the next fiscal year.
How to Submit Proposals
The FBR has also placed guidelines and forms (annexures) on their website to simplify the filing process. Customs field formations and businesses are expected to submit their proposals within the given framework so they can be properly evaluated during budget discussions.
Officials say the Customs Budget Section has already approached relevant departments and stakeholders to ensure broad participation in this exercise.
Context: Revenue Impact of Recent Tariff Changes
The call for new proposals comes at a time when tariff rationalisation measures introduced in Budget 2025–26 have already had a noticeable impact on revenue.
According to available data, it has resulted in an estimated revenue deficit of Rs200 billion in the ongoing fiscal year.
This includes:
• Reduction in ACD rates: Loss of Rs126.7 billion
• Changes in Regulatory Duties (RDs): Rs57.7 billion loss
• Customs Duty Rates: Impact of Rs15.6 Billion
These measures, although successful in lowering the cost of imports, also tended to focus more attention on the problem of maintaining revenues through trade facilitation measures.
What it All Means to Businesses in 2025
For importers, exporters, and manufacturers, this serves as an important opportunity to:
• Suggest reductions in duties for raw materials or inputs
• Recommend Feature tariff disparities impacting competitiveness
• Propose simplification of duty structures
• Strive to eliminate unnecessary regulatory obligations
Supported proposals can affect customs duties directly in the next budget, and trade operations can thus become more predictable and cost-effective. Conclusion But with an invitation for customs budget proposals well in advance, FBR seems to be taking a consultative and research-based route for the FY 2026-27 budget. The priority in 2025 is clear – smarter tariff reform, and that too with a focus on industrial development without compromising on revenue targets.
This is the right moment for organizations to engage, record problems, and provide constructive comments that are grounded in realities. The forthcoming customs budget could also be closer to a balanced situation if properly managed in terms of the relationship between economic growth and fiscal stability.