ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday notified exemption of withholding tax on import of 500,000 tonnes of sugar.

The government has already exempted 17pc sales tax and 3pc minimum value-added tax on sugar import and its subsequent supply in domestic market.

This facility will only be available to the Trading Corporation of Pakistan (TCP). The TCP will import and subsequently supply sugar in the current season.

According to the income tax notification SRO235 of 2021, withholding tax was reduced to 0.25pc on commercial import of sugar. This facility will come into effect retrospective from Jan 26.

Government has already decided to forgo 17pc sales tax and 3pc minimum value-added tax on import of sugar

On commercial import, the government has already exempted only the minimum three per cent value-added tax until June 30.

The commercial import will be subject to quota of commerce division for raw sugar by the millers from Jan 26 to June 31, 2021. However, each mill will be allowed only a maximum of 50,000 tonnes. The total allocated quota for raw sugar is 300,000 tonnes.

Earlier, on Dec 12, 2020, Prime Minister Imran Khan had publicly congratulated the relevant government agencies whose coordinated efforts helped reduce sugar prices to about Rs80 per kg from well above Rs100.

However, the prices went beyond Rs90 and again touched Rs100 per kg in Lahore and Karachi.

Published in Dawn, February 24th, 2021