ISLAMABAD: The Federal Board of Revenue (FBR)’s decision of not fixing the minimum value on the supply of sugar for sales tax calculation would have revenue implications during 2022-23. Sources told Business Recorder here on Friday that the FBR has yet not fixed the domestic price of sugar, which is usually considerably below the actual market price of the commodity for sales tax assessment.

However, the delay in the fixation of the price of sugar will result in revenue loss to the national exchequer in the remaining period of sales tax. Last year, the FBR issued a notification dealing with the fixation of the value of sugar for the assessment of sales tax at the domestic and import stages.

FBR set to fix minimum value for sugar supply

According to the latest order of the Lahore High Court (LHC), the proceedings before the FBR regarding the determination of the value of the supply of sugar shall remain suspended. Thus, the FBR will not fix the said price of the commodity till a final decision of the court.

The sugar mills have informed the court that the FBR is not empowered to fix a notional value which is completely different from the market value currently prevalent. This impinges upon the rights of the petitioners to conduct their business and trade in terms of Article 18 of the Constitution.

Copyright Business Recorder, 2023