The government has determined to release taxes on sugar import. Therefore, the overall import of 300,000 metric tonnes of pure crystal white sugar will be spared entirely from withholding tax and sales tax.
The government has rejected the withholding tax and 17% sales tax on the entire import of 300,000 metric tonnes of sugar to defeat the pressure in the nation and standardize rates. However, the Federal Board of Revenue (FBR) has authorized published two announcements.
The above will be time and quantity bound. The details to be notified shortly.
TCP has also been asked to retender for sugar with modified specs and conditions within one week.
— Hammad Azhar (@Hammad_Azhar) August 21, 2020
The announcements stated that the whole import of 300,000 metric tonnes of pure crystal white sugar shipped by Pakistan’s Trading Corporation would be wholly spared from withholding tax and sales tax. It might be dismissed given the increase in rates due to the crisis in the nation. The Economic Coordination Committee (ECC) had latterly allowed the import of 300,000 metric tonnes of sugar within Pakistan’s Trading Corporation to enhance the nation quantity of sugar.
Nevertheless, the prevailing stock area decreased drastically, and stocks decreased by 50% linked to the current meeting, which indicated that the stocks decreased from 3.365 million tonnes to 1.685 million tonnes. As a consequence of this important drop, the stocks’ would serve simply until mid-November 2020, however, before the start of the following crushing period. Accordingly, the ECC had granted to support the import of up to 300,000 MT sugar.