Bitumen Import Duty in Pakistan
Last updated: 2026-10-02
Bitumen Import Duty in Pakistan: Complete 2026 Guide
Bitumen imported into Pakistan is subject to a 11% customs duty (HS Code 2713.20.00) as of the 2025–26 budget, plus 18% standard sales tax, 5.5% income tax at source, and up to 6% regulatory duty for non-essential grades. On a $480 per metric ton (MT) CIF shipment, the total landed cost rises to approximately $605–$640 per MT depending on port charges and grade classification. Total import levies typically add 26–32% to the base CIF value.
Pakistan imported roughly 1.1 million MT of bitumen in FY2024–25, making it one of South Asia's largest importers—second only to India. Local production (primarily by Attock Refinery and Pak-Arab Refinery) covers only about 15–20% of domestic demand, so import duty policy directly drives road construction costs under NHA and provincial highway programs.
Bitumen Import Duty Rates in Pakistan (2025–26)
The duty structure changed with the Finance Act 2025. Here's the current breakdown for HS Code 2713.20.00 (petroleum bitumen):
| Levy Type | Rate | Basis | Paid To |
|---|---|---|---|
| Customs Duty (CD) | 11% | CIF value | FBR / Customs |
| Sales Tax (ST) | 18% | CIF + CD + RD | FBR |
| Income Tax (WHT) | 5.5% | CIF + CD + RD | FBR |
| Regulatory Duty (RD) | 0–6% | CIF value | FBR |
| Additional Customs Duty | 0–2% | CIF value | FBR |
| Port / Handling charges | Variable | Per MT | KPT/Port Qasim |
Key points:
- Regulatory Duty varies by grade. Penetration-grade 60/70 and 80/100 bitumen imported for national highway projects are typically exempt from RD under SRO concessions. Industrial-grade or non-standard grades may attract up to 6% RD.
- Sales tax is charged on top of duty, not on CIF value alone—this compounding effect is why the effective tax rate exceeds the headline 11%.
- Withholding tax (5.5%) is adjustable for registered companies filing returns, but non-filers effectively lose this amount.
Worked Example: Landed Cost per Metric Ton
Let's calculate the real landed cost of one metric ton of 60/70 penetration-grade bitumen imported from the UAE in 2026.
Assumptions:
- CIF price (FOB + freight + insurance): $480/MT
- Exchange rate: PKR 280/USD
- Regulatory duty: 0% (highway-grade exemption)
| Cost Component | USD/MT | PKR/MT | % of CIF |
|---|---|---|---|
| CIF value | $480 | ₨134,400 | 100% |
| Customs duty (11%) | $52.80 | ₨14,784 | 11.0% |
| Sub-total (dutiable value) | $532.80 | ₨149,184 | 111% |
| Sales tax (18%) | $95.90 | ₨26,853 | 20.0% |
| Income tax (5.5%) | $29.30 | ₨8,205 | 6.1% |
| Port/clearing charges | $6.00 | ₨1,680 | 1.3% |
| Total landed cost | $664.00 | ₨185,922 | 138.3% |
Takeaway: Import duties and taxes add roughly $184 per MT—a 38% markup on the invoice price. That's the real number procurement managers need when budgeting asphalt supply for FY2026 road projects.
Comparison: Duty Rates Across Key Importer Countries
How does Pakistan's bitumen duty stack up regionally?
| Country | Customs Duty | Sales Tax/VAT | Effective Import Tax | 2025 Import Volume |
|---|---|---|---|---|
| Pakistan | 11% | 18% | ~26–32% | 1.1M MT |
| India | 10% | 18% GST | ~28% | 3.2M MT |
| Bangladesh | 15% | 15% | ~30% | 500K MT |
| Sri Lanka | 10% | 18% | ~27% | 180K MT |
| UAE (re-export hub) | 5% | 5% | ~10% | 400K MT |
Observations:
- Pakistan's headline 11% CD is competitive within South Asia, but only when regulatory duty is waived.
- India imports 3x more volume despite a similar tax burden—larger road infrastructure budgets and refinery deficits explain the gap.
- UAE's low 10% combined rate is why 60–70% of Pakistan's bitumen imports originate there or transit through Jebel Ali.