ISLAMABAD: Federal Board of Revenue (FBR) on Friday issued notification to exempt sales tax and value added tax on import of 500,000 metric tons of white sugar.
The FBR issued SRO 215(I)/2021 to comply with ECC decision taken on January 20, 2021 regarding import of sugar at reduced tax rates to facilitate general public by providing lower retail rates at consumer end. The decision later on January 26, 2021 was approved by the federal cabinet as well.
Through the SRO the FBR exempted the following:
— the whole of sales tax at the rate of 17 percent and minimum value added tax (VAT) at the rate of three percent as specified under the 12th Schedule to the Sales Tax Act, 1990, on import and subsequent supply of 500,000 metric tons of white sugar by Trading Corporate Pakistan during the current season; and
— minimum value added tax (VAT at the rate of three percent as specified under the 12th Schedule to the Sales Tax Act, 1990, in respect of commercial import of white sugar till June 30, 2021.