White crystalline sugar attracts eight percent tax

The white crystalline sugar will be taxable at the rate of 8 percent at import and manufacturing stage and all other types of sugar will be taxable at the rate of 16 percent at import and supply stage. Experts at Ernst & Young Ford Rhodes Sidat Hyder in its comments on Finance Bill 2011 said that sugar has been taxable at the reduced rate of 8 percent at local supply stage.
This rate has been withdrawn vide SRO 480(I)/2011, however exemption has been granted to white crystalline sugar bearing PCT No 1701.9910 and 1701.9920 vide SRO 481(I)/2011 by way of inclusion in SRO 551(I)/2008. However, the same has now been subjected to Federal Excise Duty in sales tax mode at the rate of 8 percent. The impact of the above amendments is that white crystalline sugar will be taxable at the rate of 8 percent at import and manufacturing stage and all other types of sugar will be taxable at the rate of 16 percent at import and supply stage.