The Government of Pakistan has decided to import a slightly higher quantity of sugar than it had previously decided through the Trading Corporation of Pakistan (TCP) as strategic reserves.
It will now import 0.6 Million Metric Tons (MMT) instead of the previous target of 0.5 million tons, reported a local newspaper.
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The newspaper report revealed that the government has also excluded sugar from the Third Schedule of the Sales Tax, 1990, aimed at reverting to the ex-mill price of 30 November 2020.
The Federal Board of Revenue (FBR) informed the Cabinet that prior to the Finance Act, 2021, 17 percent tax had been charged on sugar, with the domestic product price fixed at Rs. 60 per kg. However, after the latest budget, sugar was added in the Third Schedule to the Sales Tax Act, 1990, by insertion of S. No. 50 of the Third Schedule.
This exempted sugar from sales tax in case it was supplied as an industrial raw material to the pharmaceutical, beverage, and confectionery industries.
Since January 2021, the price of sugar has been increasing, according to data published by the Pakistan Bureau of Statistics (PBS). The Prime Minister had taken notice of this hike and had issued instructions to revert the sales tax on sugar to the ex-mill price until 30 November 2021.
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Now, in its latest meeting, the Cabinet said to the Ministry of Industries & Production that the benefit must be passed on to the consumers as lower prices.
