The Federal Board of Revenue (FBR) has withdrawn value of $725 per metric tons (MT) fixed on the import of sugar and now 17 percent sales tax would be applicable on the actual value of the commodity at the import stage.
The FBR has amended SRO 812(I)/2016 through an SRO 233(I)/2020 issued here on Thursday.
Under SRO 812(I)/2016, the FBR had fixed value of domestically produced and imported sugar from September 2, 2016. The value of domestically produced sugar was fixed at Rs 60 per kg and the value of imported sugar was fixed at $725 per metric tons.
The FBR has abolished this fixed value of $725 per MT on the import of the commodity.
Official sources told Business Recorder here on Thursday that the values of sugar were fixed on import and domestic stages for the purpose of assessment of sales tax. When the fixed value of $725 per MT has been withdrawn, the sales tax would be charged on the actual value of the imported sugar. The value has been reduced which would ultimately result in rationalization of sales tax at the import stage.
The meeting of the Economic Coordination Committee (ECC) of the Cabinet held on March 18, 2020 did not discuss the issue of sugar import as Ministry of Industries had withdrawn the summary.
Following is the text of the notification issued here on Thursday:
In exercise of the powers conferred by first proviso to clause (46) of section 2 of the Sales Tax Act, 1990, the Federal Board of Revenue is pleased to direct that the following amendment shall be made in its Notification No S R O 812(I)/2016, dated the 2nd September, 2016, namely In the aforesaid Notification, in the Table, in column (1), serial number 2 and corresponding entries relating thereto in columns (2) and (3) shall be omitted.
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