Tax cut approved by ECC on sugar import: Hammad Azhar
ISLAMABAD: Federal Minister for Industries and Production Hammad Azhar said on Friday that the Economic Coordination Committee (ECC) has approved the reduction in taxes on imported sugar, ARY News reported.
Hammad Azhar said that the decision will facilitate private sector for sugar import besides bringing improvements in the country’s domestic stocks and stabilising prices.
The tax volume has been reduced to 1 per cent from 17 per cent, whereas, the value-added tax is reduced to zero from 3 per cent and the withholding tax is fixed up to 0.25 per cent. The renewed taxation policy was approved for a limited period and a specific quantity of sugar import.
ECC has ratified the proposal to reduce & remove the incidence of taxes at import stage of sugar. This will facilitate private sector imports, improve domestic stocks and stabilise prices.
WHT at import: 5.5% to 0.25%
Value added tax at import: 3% to 0%
ST at import: 17% to 1%
— Hammad Azhar (@Hammad_Azhar) August 21, 2020
Moreover, Trading Corporation of Pakistan (TCP) has been directed to take necessary steps and finalisation of tenders within one week, he added.
Earlier in the day, the Federal Board of Revenue (FBR) exempted the import of 300,000 tonnes of sugar from sales and income taxes to bring down the price of sweetener in the country.
FBR issued a notification granting the exemption on the import of sugar by a private firm.
The notification came following the Economic Coordination Committee (ECC) of the Cabinet’s approval to import 300,000 tonnes of white sugar to arrest the skyrocketing price of the commodity.
“The ECC considered a proposal of the Ministry of Industries and Production for the import of refined sugar by the Trading Corporation of Pakistan (TCP) to maintain buffer stocks, and allowed import of up to 300,000 tons of white sugar,” a statement issued by the finance ministry had read.
A three-member committee comprising industries and production secretary, commerce secretary and finance secretary was tasked to decide the mode of procurement of sweetener.