The proposed budget for the 2026-27 fiscal year has taken initiatives to reduce or withdraw at least 70 tariffs, taxes, and regulatory barriers, with the information technology, electric vehicle manufacturing, healthcare equipment, and renewable energy sectors receiving the maximum incentives.
According to budget analysis, customs duties have been reduced or withdrawn in more than 34 cases. Regulatory duties have been abolished or reduced for over 20 products, while supplementary duties have been cut in at least six instances.
VAT has been reduced or withdrawn on five products, advance income tax has been lowered in eight cases, and advance tax has been scrapped in four cases.
The minimum value for products such as lipstick, face cream, face wash, moisturising lotion, door locks, and ovens has been reduced, lowering the basis for import valuation of these items.
For assistive devices for people with special needs and equipment for installing solar power plants, exemptions from nearly all types of duties and taxes – except VAT and advance income tax – have been maintained.
Revenue Board officials said the main objectives of this year’s tariff policy are to reduce production costs, encourage technology adoption, increase environmentally friendly investment, and align with the international trade framework.
However, the extent to which these benefits will impact government revenue collection will only become clear in the next fiscal year, officials added.
