FBR exempts withholding tax from 300,000-tonne wheat import

KARACHI: The Federal Bureau of Revenue (FBR) has Tuesday announced it is waiving the withholding tax on the import of 300,000 metric tons of wheat after the government instructed it, ARY News reported.

The federal revenue body said it is exempting the Withholding Tax from wheat import after the federal government instructed it to do so and a notification has been released to that effect today.

However, the wheat imported by the private sector via the Trading Corporation of Pakistan will not be exempted from this duty, the notification added.

READ: Abdul Hafeez Shaikh to chair ECC meeting on Wednesday

Moreover, it may be noted that Finance Minister Abdul Hafeez Shaikh will chair the session of the Economic Coordination Committee (ECC) to discuss a seven-point agenda tomorrow.

In the previous meeting on January 21, ECC had 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.

The ECC meeting chaired by Minister for Finance and Revenue Abdul Hafeez Shaikh had directed the Trading Corporation of Pakistan (TCP) to import white sugar up to 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 up to 30th June 2021, read a statement issued by the ministry.