ISLAMABAD: Finance Secretary Imdadullah Bosal said on Wednesday that negotiations are underway between the government and the International Monetary Fund (IMF) on the issue of exemption of duties and taxes on the import of sugar.
During the meeting of the National Assembly Standing Committee on Finance held on Wednesday, the Ministry of Finance secretary stated that one of the structural benchmark agreed between the fund and the government is not to grant tax exemptions/amnesty schemes.
“We are in consultation with the IMF regarding tax exemption on sugar,” he added.
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The committee members also raised questions that whether additional revenue measures would be taken in case of tax exemption on sugar imports.
The Federal Board of Revenue (FBR) has exempted Customs duty on the import of 500,000 metric tons of sugar and also reduced sales tax rate from 18 percent to 0.25 percent and withholding tax up to 0.25 percent on the import of commodity by the Trading Corporation of Pakistan (TCP) or the private sector.
The FBR has also exempted three percent minimum value-added tax (VAT) on the import of sugar having quantity of 500,000 metric tons.
FBR Chairman Rashid Mahmood Langrial informed the committee that the FBR has not moved any summary to the federal cabinet for exemption of duties and taxes on the import of sugar.
The federal cabinet has taken the decision on a summary moved by the Ministry of National Food Security and Research (MNFSR).
The FBR has issued the exemption notifications after receiving decision of the Federal Cabinet, Langrial stated.
The FBR chairman stated that there are 54 percent taxes imposed on sugar including 20 percent import duty. There should not be such a high import tariff on the commodity. The prices of sugar at one time came down to Rs 130 per kg, he said.
The Chairman of the Finance Committee, Naveed Qamar, was of the view that there is no shortage of sugar in the country.
There are sufficient stocks of the commodity in the country.
It is not clear what would be the rationale behind the import of sugar in the presence of ample stocks. The government should only be worried about the price of wheat which is de-regulated, but sugar is regulated in the country.
Copyright Business Recorder, 2025
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