In a move likely to impact millions of low-income citizens, the government has decided to impose a Rs. 200 per kilogram tax on imported second-hand clothes, commonly sold in landa bazaars across the country.
The new tariff, introduced under the latest customs revision, aims to increase revenue from the used clothing sector, which has seen a surge in imports over the past few years due to growing demand for affordable apparel.
However, traders and market associations have criticized the decision, warning that it will push up prices for consumers who rely on second-hand clothing as an affordable alternative amid rising inflation.
“This tax will hurt the poor the most. A jacket that used to sell for Rs. 800 could now cost over Rs. 1,200,” said a vendor at Lahore’s Landa Bazaar.
Economists say the policy could reduce import volumes and shift the market toward cheaper, lower-quality domestic alternatives. Officials, however, maintain that the step is necessary to curb smuggling and regulate the used-garment trade.
The measure is expected to take effect from next month, after approval from the Federal Board of Revenue (FBR).
