FBR exempts sales tax, income tax on sugar import

FBR exempts sales tax, income tax on sugar import

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday exempted sales tax and income tax on import of sugar in compliance with the government decision to lower the price of the commodity.

The FBR issued SRO 750(I)/2020 to exemption income tax and SRO 751(I)/2020 to exempt sales tax.

Through SRO 750(I)/2020, an amendment has been made to Second Schedule of Income Tax Ordinance, 2001.

As per the amendment a new clause 12G has been inserted to the second schedule, which states: “(12G) The provisions of Section 148 shall, in pursuance of the Cabinet Decision dated August 04, 2020, not apply on import by the Trading Corporation of Pakistan of 300,000 metric tons of white sugar having PCT heading 1701.9910, 1701.9920, specification B.”

As per SRO 751(I)/2020, the same specification and PCT heading the import of sugar has been exempted from whole of sales tax.

The Economic Coordination Committee (ECC) of the Cabinet in its meeting held last week of July 2020 allowed import of up to 300,000 metric tonnes of white sugar to maintain buffer stocks in the country.

The permission was given at the ECC meeting in Islamabad with Adviser on Finance Dr. Abdul Hafeez Shaikh in the chair.

The procurement and other modalities of sugar import will be decided by a three-member committee, comprising Secretary Industries and Production, Secretary Commerce and Secretary Finance.