Govt cuts import duties on cars, rice, others in 2026 policy

Read Also: FG cuts import duties on cars, rice, others in 2026 policy

At the core of the reform is a revised national tariff schedule covering 127 items. Notably, import duties on fully built passenger vehicles, including four-wheel drives and station wagons, have been reduced to 40 percent from the previous 70 percent rate established under the 2015 policy. The policy also introduced reductions on essential food imports. Bulk rice tariffs dropped to 47.5 percent from 70 percent, while broken rice is now set at 30 percent. Crude palm oil imports will attract an effective duty of 28.75 percent, and raw sugar tariffs now range between 55 and 57.5 percent, both reflecting cuts from earlier rates. Additionally, tariffs on refined salt have been adjusted to 55 percent, while industrial and construction materials such as ceramic tiles and steel products now attract lower duties. Steel items, including zinc-coated sheets and rods, are largely pegged at 35 percent, while cold-rolled steel with low carbon content is set at 15 percent. To encourage industrial growth, the government approved zero import duties on agricultural and industrial machinery, cargo ships, railway locomotives, and breathing equipment. Importers who initiated transactions before April 1 have been granted a 90-day grace period to clear goods under the old rates. A new excise duty regime and green tax surcharge will take effect from July 1, 2026. However, vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured auto components are exempted, signaling a policy shift toward cleaner transportation and domestic production.