ECC ratifies taxes at import stage of sugar
In order to facilitate private sector import of sugar, the Economic Coordination Committee (ECC) has ratified the proposal to reduce and remove the incidence of taxes at import stage of sugar.
Minister for Industries and Production Hammad Azhar said that the ratification will facilitate the private sector imports, improve domestic stocks and stabilise prices.
The Minister said withholding tax at import has been reduced from 5.5 percent to 0.25pc, Value added tax has been reduced from 3pc to nil, and sales tax from 17pc to 1pc.
Azhar said that the ratified tax rates will be time and quantity bound. “TCP has also been asked to retender for sugar with modified specifications and conditions within one week,” informed Azhar.
Earlier, the Federal Board of Revenue (FBR) exempted sales tax and withholding tax on the import of 300,000 metric tons of sugar by the Trading Corporation of Pakistan (TCP), and has issued two notifications in this regard.
According to the SRO 750(I)/2020, the FBR has amended Second Schedule of the Income Tax Ordinance 2001. The provisions of section 148 shall, in pursuance of Cabinet Decision, not apply on import by the Trading Corporation of Pakistan of 300,000 metric tons of white sugar.
Through the SRO 750(I)/2020, the FBR has exempted whole of the sales tax on the import of 300,000 metric tons of white sugar, specification-B as per PSQCA standards by Trading Corporation of Pakistan.