ISLAMABAD: The Federal Board of Revenue (FBR) has exempted sales tax on the import of 300,000 metric tonnes of sugar to arrest the rising price of the commodity in the market.
FBR on Thursday issued a notification (SRO751) to implement the decision with immediate effect.
The facility will be available to the Trading Corporation of Pakistan, which has been tasked to bridge the shortfall in the domestic market.
Pakistan was exporting sugar until earlier this year, but now has a shortage as sugar production has fallen below consumption levels for the 2019/20 marketing year ending Sept 30.
Last month, the Economic Coordination Committee (ECC) had allowed import of 300,000 tonnes of sugar in anticipation of its shortage. It was decided that procurement and other modalities of sugar import will be decided by a three-member committee, comprising industries and production commerce and finance secretaries.