FBR raises minimum sugar price to Rs72.22/kg

Shahnawaz AkhterWeb Editor

16th Aug, 2021. 04:24 pm

KARACHI: The Federal Board of Revenue (FBR) has increased the minimum price of white crystalline sugar to Rs72.22/kg for the purpose of collecting sales tax.

In a notification issued on Monday, the revenue board notified the minimum rate of sugar, which has been increased to Rs72.22/kg from Rs60/kg.

The FBR issued the notification; following the suspension of the law for collecting sales tax on retail basis. Through the Finance Act, 2021, an amendment has been made to the Third Schedule of Sales Tax Act, 1990. As per the amendment, the sales tax would be collected on the retail sale of the commodity.

However, the rising price of the sweetener and high monetary impact to the end-consumer, the government decided to suspend the law till November 30, 2021 and restored the previous mechanism for sugar sales tax.

The FBR fixed the value of sugar at Rs60/kg for the collection of sales tax through a statutory regulatory order SRO 812(I)/2016. Since then, the minimum rate was applicable, despite the significant increase in the retail price of sugar. The sugar mills are required to collect the sales tax on behalf of the FBR.

The government, through the Finance Act 2019, increased the rate of sales tax from 8 per cent to 17 per cent on the fixed value of Rs60/kg.

Considering the high retail price of sugar and suspension of the law till November 30, 2021, the FBR increased the minimum price of sugar to Rs72.22/kg for the collection of sales tax at 17 per cent.

Adsence 300X250