The Federal Revenue Board (FBR) has abolished the sales tax on the local supply of 300,000 tons of sugar imported by the Trading Corporation of Pakistan (TCP).
The FBR released SRO.1038 (I) / 2020 here Monday to launch the S.R.O. 751 (1) 72020 of 20 August 2020.
Previously, the FBR had abolished sales tax and withholding tax on imports of 300,000 tons of sugar by TCP. The FBR had exempted full sales tax for imports of 300,000 tonnes of white sugar, Specification B under TCP PSQCA regulations.
The sales tax exemption on the local supply of sugar will now apply to the same quantity already imported by TCP.
On August 4, 2020, the federal cabinet decided to exempt sugar imports by TCP and the receiving agencies, who will be designated by the Ministry of Industry, from all duties and taxes as soon as possible to ensure a smooth and safe transfer. guarantee. timely. from ports, storage, logistics and delivery to the respective destinations.
The TCP issued another tender for 100,000 tons and an amount of 76,700 tons against the tender at a rate of $ 425 PMT. In addition, TCP was in the process of issuing a new tender for 50,000 tons. Sugar imported from TCP is expected to arrive in Pakistan from October 17, 2020.
Punjab government demand is between 200,000-300,000 tons of sugar and therefore Ministry of Industry and Production has appointed Punjab government as the beneficiary body. The current work shared by TCP shows that the price offered to the recipients and the estimated sale price thereafter will be between Rs.94.43 and Rs.96.27 per kg, including the sales tax delivery cost at the rate of 17 percent, income tax 0.25 percent, cost of freight / packing / margin of Rs. 8 per kg.
The Ministry of Industry and Production recently reported at a meeting that according to the POS proposed by the Punjab government, imported sugar would be sold at a government-controlled and controlled rate.
This price, which is higher than the actual market price, may not attract buyers from receiving agencies and requires government subsidy.
The Ministry of Industry and Production proposed to exempt the sales tax on the supply of sugar imported by TCP up to 300,000 tons subject to the arrival of that sugar and SRO 751 (1) / 2020 of 20 August 2020 from the Revenue Division can be amended accordingly. .
The ECC then approved the proposal and FBR posted the message here Monday.
At the address of the ECC held on August 21, 2020, TCP issued a tender with specifications changed from average to fine of 100,000 tons, awarding only 25,000 tons for $ 434.8 PMT.