The Federal Government has approved the 2026 Fiscal Policy Measures (FPM), introducing sweeping tariff reductions aimed at boosting key sectors of the economy.
According to the new policy, 127 items will see reduced import duties, including crude palm oil, rice, vehicles, and steel products, in a move to stimulate trade and lower costs.
Import duties on vehicles have been cut to 40 percent from 70 percent, while rice tariffs dropped significantly, alongside reductions on sugar, salt, and construction materials.
The government also announced a 90-day grace period for importers who had existing documentation before April 1 to clear goods under previous rates.
However, new excise duties and a green tax surcharge are scheduled to take effect from July 1, 2026, with certain items like electric vehicles and mass transit buses exempted.
Officials say the reforms are designed to enhance economic growth, improve price stability, and encourage investment in critical industries.
