FBR defers retail tax implementation on sugar

KARACHI: The Federal Board of Revenue (FBR) on Thursday deferred the implementation of the sales tax on retail price of sugar for five months.

The FBR issued an SRO 989(I)/2021 to defer the implementation of the sales tax, which was introduced through the Finance Act, 2021.

The refined sugar was added to the Third Schedule of the Sales Tax Act, 1990, under which the sales tax on the supply of sugar would be applicable on a retail basis.

The law was applicable from July 1, 2021. However, considering the surge in the prices of the commodity, the Federal Cabinet in a recent meeting decided the sales tax on sugar would be applied on ex-mill prices till November 30, 2021.

The FBR notification said the amendment would not be applicable for the period, commencing July 1, 2021 and ending on November 30, 2021.