The Economic Coordination Committee (ECC) on Friday has ratified the proposal to reduce and remove the incidence of taxes at import stage of sugar.
“This will facilitate private sector imports, improve domestic stocks and stabilise prices, said Federal Minister for Industries and Production Hammad Azhar.
As per the ratified tax rates on imported sugar the Withholding Tax (WHT) on the item has been reduced from 5.5 percent to 0.25pc, whereas Value Added Tax or VAT at import has been reduced from 3pc to zero percent and Sales Tax at import has been reduced from 17pc to 1pc.
Azhar said that the ratified tax rates will be time and quantity bound. “TCP has also been asked to retender for sugar with modified specifications and conditions within one week,” informed Azhar.