Tax on sugar retail sale to be imposed from December 01

Tax on sugar retail sale to be imposed from December 01

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said that sales tax on sugar retail sale shall be imposed from December 01, 2021.

The FBR issued SRO 989(I)/2021 to defer the implementation of sales tax on retail sale of sugar for five months.

According to the SRO the sales tax on sugar retail sale shall not be applicable for the period commencing from July 01, 2021 and ending November 30, 2021.

Through Finance Act, 2021, an amendment made to the Sales Tax Act, 1990. Through the amendment the sugar was brought into the Third Schedule of Sales Tax Act, 1990. By bringing the commodity into the third schedule the sales tax shall be collected on the basis of retail price.

After the approval of the Finance Act, 2021 from the National Assembly, the sales tax on retail basis on sugar was implemented from July 01, 2021. However, the federal cabinet in the recent meeting decided to defer the implementation of the law till November 2021.

The decision was taken to check the rising prices of sugar in the domestic market.

The FBR in pursuance of the federal cabinet decision issued the SRO.

Leave a Reply

You have to agree to the comment policy.