ISLAMABAD: The Federal Board of Revenue (FBR) has informed exception of sales tax obligation and value-added tax on import of 500,000 tonnes of sugar, as an international tender has been floated to import at the very least 50,000 tonnes of the asset by Eidul Fitr.
A sales tax alert (SRO215 of 2021) was provided here to exempt the whole of 17pc sales tax obligation and minimum value-added tax of three per cent. This facility will only be offered to the Trading Corporation of Pakistan (TCP).
The TCP will certainly import and also consequently provide the sugar in the present season.
On business imports, the federal government has spared only the minimum three per cent value-added tax until June 30.
Earlier on Dec 12, 2020, Prime Minister Imran Khan had openly praised the pertinent government agencies whose coordinated initiatives helped in reducing sugar costs to about Rs80per kg from well above Rs100.
Tender provided to guarantee arrival of consignment by Eid
However, the costs went beyond Rs90 over the next couple of weeks as well as again touched Rs100 per kg in Lahore and Karachi.
The federal government would certainly ensure a total of concerning 850,000 tonnes of additional sugar on the market for rate stabilisation. Of this, about 500,000 tonnes would certainly be imported through the TCP as well as the staying 350,000 tonnes by the economic sector i.e. sugar mills.
On the other hand, European traders have claimed the TCP has issued a new global tender to buy 50,000 tonnes of white sugar, includes Reuters.
The tender closes on March 2.
The sugar is sought crammed in bags. Shipment should be scheduled arrival in Pakistan by May 15.
In 2020, also, Pakistan provided a series of sugar import tenders to stabilise rates and improve domestic products.