ECC approves tax reduction on sugar import
ISLAMABAD: In a bid to bring down prices of sugar in the country, the Economic Coordination Committee (ECC) of the cabinet on Wednesday approved a reduction of withholding income tax on commercial import of white and raw sugar form 5.5 per cent to 0.25 per cent and removal of value-added sales tax on import of white sugar, ARY News reported.
The ECC meeting chaired by Minister for Finance and Revenue Dr. Abdul Hafeez Shaikh directed the Trading Corporation of Pakistan (TCP) to import white sugar upto 500,000 MT if and when needed during the current season.
The reduction in taxes will incentivize the sugar mills for the import of 300,000 MT raw sugar upto 30th June 2021, read a statement issued by the ministry.
Ministry of National Food Security and Research presented a summary to authorize TCP to make immediate arrangements for the import of 300,000 MT of wheat through the tendering process as ratified by the cabinet and nominate PASSCO as a recipient agency for the imported wheat to replenish its stock as needed. ECC accorded approval as requested by the Ministry.
ECC also approved another summary by the Ministry of National Food Security and Research regarding the allocation of 60,000 MT of wheat for the Food Department, Balochistan from PASSCO’s existing stock on the subsidized rate as per previous practice.