Sugar price increased by Rs2/kg in Karachi’s wholesale market
KARACHI: Following the government’s recommendation to increase sugar price in the 2019-20 federal budget by Rs3.60/kg, Sugar Mills owners on Wednesday jacked-up price of 100-kg bag by Rs. 200, ARY News reported.
“Price of 100kg sugar bag is now being sold at Rs 6,800”, the wholesale market dealers said.
With the latest hike, the sugar price with the increase of Rs. 2 per kg now has been fixed at 68 rupees per kg in the wholesale market.
State Minister for Revenue Hammad Azhar while presenting the budget in the National Assembly, yesterday, maintained that presently sugar was subject to sales tax at 8 per cent.
He stressed that there was huge economic potential, but tax collection from this sector was Rs18 billion which was much lower than actual potential.
“To maximise this tax gap and to harmonise its rate with other items, it is proposed that the sales tax rate on sugar may be increased to 17 per cent,” the state minister continued.
As a result of this measure, the price of sugar was expected to increase by Rs3.60 per kilogramme.