ISLAMABAD: Presenting the budget in the National Assembly, State Minister of Revenue Hammad Azhar said presently sugar was subject to sales tax at 8 per cent.
He stressed that there was huge economic potential, but tax collection from this sector was Rs18 billion which was much lower than actual potential.
“To maximise this tax gap and to harmonise its rate with other items, it is proposed that the sales tax rate on sugar may be enhanced to 17 per cent,” Azhar said.
Hammad Azhar added that to provide partial relief to consumers from this rate enhancement, it was being proposed that sugar may be excluded from the items on which further tax at 3 per cent is payable if supplied to unregistered persons.
As a result of this measure, the price of sugar was expected to increase by Rs3.60 per kilogramme.—INP