ISLAMABAD: The Federal Board of Revenue (FBR) will collect reduced rate of 0.25 percent withholding tax on commercial import of white sugar from January 26, 2021 to June 30, 2021, according to a notification issued by the FBR, here on Tuesday.

The FBR will also collect a reduced rate of 0.25 percent tax on import of raw sugar by sugar mills from January 26, 2021 to June 30, 2021 provided that such imports shall not exceed 50,000 metric tons per sugar mill and 300,000 metric tons in aggregate by the sugar industry.

The FBR has amended the Second Schedule of the Income Tax Ordinance 2001 through an SRO 235(I)/2021, issued here on Tuesday.

The provisions of section 148 (withholding tax on imports) and 153 (Payment of tax for goods, services and contracts at local stage) shall not apply on import and subsequent supply of 500,000 metric tons of white sugar imported by the Trading Corporation of Pakistan.

The FBR has already exempted 17 percent sales tax and three percent minimum value-added tax (VAT) on import and subsequent, supply of 500,000 metric tons of white sugar by the Trading Corporation of Pakistan.

The FBR has also exempted three percent minimum VAT on the commercial import of white sugar till June 30, 2021.

According to the notification, in pursuance of the Cabinet decision, the tax under section 148 on commercial import of the white sugar shall be collected at the rate of 0.25 percent from January 26, 2021 till June 30, 2021.

Subject to quota allotment by the Commerce Division, tax under section 148 shall be collected at the rate of 0.25 percent on import of raw sugar imported by sugar mills from January 26, 2021 to June 30, 2021 (both days inclusive) provided that such imports shall not exceed 50,000 metric tons per sugar mill and 300,000 metric tons in aggregate by the sugar industry.

The provisions of section 148 and 153 shall not apply on import and subsequent supply of 500,000 metric tons of white sugar imported by the Trading Corporation of Pakistan.

Copyright Business Recorder, 2021