Supply of sugar: LHC restrains FBR from setting minimum value

ISLAMABAD: The Lahore High Court (LHC) has restrained the Federal Board of Revenue (FBR) from the fixation of the minimum value on supply of sugar.

It is reliably learnt that the court has granted stay order to eight sugar mills - members of the Pakistan Sugar Mills Association (PSMA).

According to the court’s order, till the next date of hearing the proceedings before the FBR regarding determination of value of supply of sugar shall remain suspended.

Thus, the FBR will not fix the said price of the commodity till final decision of the court.

FBR set to fix minimum value for sugar supply

The court has fixed January 17, 2023 as the next date of hearing.

The PSMA had written three letters to the FBR for personal hearing in the matter of fixation of the minimum value on supply of sugar.

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 term of Article 18 of the Constitution.

In a communication to the FBR, the PSMA had proposed that there should be no minimum value for fixation of sugar. Furthermore, input/proposals have been again sought by the FBR for sugar value fixation.

The industry pleaded that the FBR cannot exercise unbridled, unstructured and discretionary power under proviso to section 2(46) of the Sales Tax Act to fix ex-mill sugar value.

Copyright Business Recorder, 2022