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Tag: sugar

  • FBR grants tax relief of Rs24.14 billion on sugar sales

    FBR grants tax relief of Rs24.14 billion on sugar sales

    ISLAMABAD: Federal Board of Revenue (FBR) has granted concession of Rs24.14 billion as sale tax on domestic supply of sugar.

    According to official documents, the FBR granted concession of Rs24.41 billion on supply of domestic sales of sugar to end consumers during tax year 2020.

    The concession was granted as reduced rate of eight percent on sales of the commodity made by sugar mills under 8th schedule of Sales Tax Act, 1990.

    The FBR said that the beneficiary of this concessional rate was general public.

    Under the reduce rate of sales tax under 8th Schedule, the FBR granted tax relief of Rs35.45 billion on consumer items mainly food items.

    The details of the tax relief revealed that an amount of Rs6.77 billion was granted as sales tax concession to soya bean meal as industrial input.

    Further an amount of Rs2.58 billion has been granted as tax concession on ingredients of poultry feed, cattle feed, except soya bean meal of PCT heading 2304.0000 and oilcake of cotton-seed falling under PCT heading 2306.1000.

  • FBR exempts sales tax on local supply of imported sugar

    FBR exempts sales tax on local supply of imported sugar

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday exempted 17 percent sales tax on domestic sale of imported sugar.

    The FBR issued SRO 1038(I)/2020 to comply with the government decision to allow tax free import of sugar in order to reduce the price of the commodity in the local market.

    The Economic Coordination Committee (ECC) allowed the import of 300,000 metric tons of sugar by Trading Corporation of Pakistan (TCP) without imposition of sales tax at the import stage. The FBR issued SRO 751(I)/2020 dated August 20, 2020 to comply with the decision.

    FBR sources said that although the commodity was allowed exemption from sales tax on import of sugar but there was an ambiguity that subsequent sale of such sugar remained subject to sales tax on supply to the domestic market.

    To remove this ambiguity the FBR now issued the SRO 1038(I)/2020 dated October 12, 2020 and streamline the supply of sugar to the local market.

    The FBR sources believed that this would help in reducing the prices in the local market. The price of sugar in the local market had gone up to above Rs100 per kilogram.

    On the other hand, industry sources said that the decision to allow sales tax exemption on local supply of imported sugar would be discriminatory against local sugar manufacturers.

    The local sugar mills are subject to 17 percent sales tax on a per kilo price fixed by the government.

  • Persons on Sales Tax ATL allowed sugar import with tax concessions

    Persons on Sales Tax ATL allowed sugar import with tax concessions

    ISLAMABAD: The ministry of commerce has said that only those importers, who are on the Active Taxpayers List (ATL) of Sales Tax issued by the Federal Board of Revenue (FBR), are eligible to import white sugar on concessional rate of tax.

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  • SBP issues instructions to banks on sugar import

    SBP issues instructions to banks on sugar import

    KARACHI: State Bank of Pakistan (SBP) on Monday issued instructions to banks regarding import of sugar by private importers.

    The central bank said that the ministry of commerce had issued a public notice stating that the government had allowed import of 200,000 tons of white sugar by private importers as per the terms and conditions mentioned therein.

    The SBP said that to facilitate the import of sugar under the subject Public Notice, the banks may process the requests for import of white sugar as per following terms and conditions:

    Import may be allowed on behalf of those importers who have been issued permit(s) by the Ministry of Commerce under the above-mentioned Public Notice;

    Import may be allowed on CFR Free out basis, as an exception to the instructions given under Para 5 Chapter 13 of the FE Manual;

    Advance payment up to 100 percent of the value of letter of credit/contract/proforma invoice may be allowed, subject to compliance with other terms & conditions given under Para 30 of Chapter 13 of the FE Manual;

    The commercial banks have been asked to submit consolidated data of LCs issued and advance payments made, against issued permits, to Foreign Exchange Operations Department, SBP BSC, Head Office, Karachi on daily basis.

    The banks should also ensure compliance with all other terms & conditions of permit(s) issued by Ministry of Commerce.

  • FBR allows sugar import at reduced rates of income tax, sales tax

    FBR allows sugar import at reduced rates of income tax, sales tax

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday allowed import of sugar at reduced rate of income tax and sales tax for the quantity as approved by the government.

    The FBR issued SRO 770(I)/2020 and SRO 771(I)/2020 to amend Income Tax Ordinance, 2001 and Sales Tax Act, 1990 for allowed reduced rates of advance income tax at 0.25 percent and sales tax at one percent.

    Through SRO 771(I)/2020, the Second Schedule of Income Tax Ordinance, 2001 has been amended.

    In the Schedule, in Part- II, after the omitted clause (9A), the following new clause has been inserted, namely:—

    “(9AA) In respect of import of white crystalline sugar falling under H.S codes 1701.9910 and 1701.9920 from the 25th day of August, 2020 to the 15th day of November, 2020 (both days inclusive), tax under section 148 shall be collected at the rate of 0.25 percent provided that such imports shall not exceed three hundred thousand metric tons in aggregate, as per mode and manner prescribed by Ministry of Commerce during the said period.”

    Earlier, on August 20, 2020, the FBR issued SRO 750(I)/2020 to allow exemption of income tax on sugar import by Trading Corporation of Pakistan.

    It said: “The provisions of Section 148, in pursuance of the Cabinet Division in case No. 541/30/2020 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.”

    Through S RO 770(I)/2020, it is allowed:

    The imported white crystalline sugar, falling in PCT headings 1701.9910 and 1701.9920, shall be chargeable to sales tax under clause (b) of sub-section (1) of section 3 of the Sales Tax Act, 1990, at the rate of one percent; and

    The exemption shall be applicable to white crystalline sugar to be imported during the period from 25th August, 2020 to 30th November, 2020 (both days inclusive), as per quantity, quality , mode and manner determined by the Ministry of Commerce and Textile, Government of Pakistan; and

    The imported white crystalline sugar falling in PCT headings 1701.9910 and 1701.9920 shall also be exempt from payment of minimum value addition tax as specified in the Twelfth Schedule to the Sales Tax Act, 1990.

    Earlier, the FBR issued SRO 751(I)/2020 dated August 20, 2020 to exempt whole of sales tax on import of 300,000 metric tons of white sugar (PCT 1701.9910, 1701.9920, specification B as per PSQCA standards) by Trading Corporation of Pakistan.

  • 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.

  • FBR deploys IR officers at 20 sugar mills for monitoring of production, supplies

    FBR deploys IR officers at 20 sugar mills for monitoring of production, supplies

    ISLAMABAD: Federal Board of Revenue (FBR) has deployed officers of Inland Revenue at 20 sugar mills to monitor production and supply for checking tax evasion.

    The IR officers have been deployed at the premises of sugar mills under Section 40B of Sales Tax Act, 1990 for the monitoring of stock, production and supply.

    Sources told PkRevenue.com that Large Taxpayers Unit (LTU) Karachi had requested the FBR to allow monitoring of sugar mills as huge tax evasion was detected in the past.

    Recently, the FBR conducted analysis of sugar production of the last year which revealed huge tax evasion by sugar mills.

    The outcome of analysis showed that FBR and the Cane Commissioner of three provinces had a difference of 641,000 metric tons which showed that the sugar mills were under reporting their stock in order to evade tax payments.

    It is also identified that the local supplies during the tax period of July 2019 fell by 255 percent due to enhancement in tax rate from eight percent in June 2019 to 17 percent in July 2019.

    The analysis further revealed that the stock holding last year ending June 2018 was 3,147,000 metric tons where as closing stock of the year ending on June 2019 was only 2,230,778 metric tons, which showed 29 percent decline.

    It is also pointed out that sugar manufacturers had declared high quantity of supplies during June 2019 to evade sales tax as the tax rate was to increase in July 2019.

    The FBR analysis revealed that the sugarcane was the biggest raw material of sugar industry.

    The undocumented/under-documented nature of this agriculture sector poses a great challenge to accurately gauge the quantity of sugarcane produced and supplied to a particular mill.

    Considering the above facts the FBR allowed deployment of IR officers at the sugar mills.

    It is worth mentioning that the FBR Chairman through an official memorandum barred the tax offices for invoking Section 40B of the Sales Tax Act, 1990 without prior permission of the board or Member IR Operations.

    Following is the list of sugar mills where IR officers have been deployed:

    01. M/s. Darya Khan Sugar Mills Limited.

    02. M/s. Popular Sugar Mills Limited.

    03. M/s. Deharki Sugar Mill Limited.

    04. M/s. Adam Sugar Mill Limited.

    05. M/s. Baba Farid Sugar Mill Limited.

    06. M/s. Digri Sugar Mill Limited.

    07. M/s. Mirpurkhas Sugar Mill Limited.

    08. M/s. Faran Sugar Mills Limited.

    09. M/s. Mehran Sugar Mills Limited.

    10. M/s. Dewan Sugar Mills Limited.

    11. M/s. Al-Abbas Sugar Mills Limited.

    12. M/s. Ansari Sugar Mills Limited.

    13. M/s. Bawany Sugar Mills Limited.

    14. M/s. Larr Sugar Mills Limited.

    15. M/s. New Dadu Sugar Mills Limited.

    16. M/s. Rani Sugar Mills (Pvt) Limited

    17. M/s. Al-Noor Sugar Mills Limited

    18. M/s. Tando Allahyar Sugar Mills Limited

    19. M/s. Habib Sugar Mills Limited

    20. M/s. Sindabadgar Sugar Mills Limited

  • Monitoring of Withholding Tax: FBR launches mega operation against textile, sugar companies for tax evasion

    Monitoring of Withholding Tax: FBR launches mega operation against textile, sugar companies for tax evasion

    ISLAMABAD: Federal Board of Revenue (FBR) has launched mega crackdown against textile and sugar sectors for suppressing sales and evading tax by issuing fake and flying invoices.

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