ISLAMABAD: The Federal Board of Revenue (FBR) has fixed Rs72.22 per kg as the ex-mill value of white crystalline sugar for the purpose of assessment of sales tax.
The FBR has issued SRO 1027(1)12021 for the fixation of the value of the domestically-produced white crystalline sugar.
Recently, the federal cabinet decided that the implementation of sales tax on sugar will be at ex-mill price till 30 November 2021.
The FBR suspended the provision of sales tax collection on sugar from the manufacturers on the basis of retail price up to November 30, 2021.
The FBR had issued an SRO989(I)/2021 for not charging sales tax on sugar under the Third Schedule to the Sales Tax Act, 1990 for a specific time period.
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The entry number 50 of the Third Schedule to the Sales Tax Act, 1990 is related to the applicability of sales tax on the basis of printed retail price on sugar except where it is supplied as an industrial raw material to pharmaceutical, beverage, and confectionery industries.
This sales tax collection mechanism on the basis of printed retail price would not be applicable from July 1, 2021 to November 30, 2021.
During last budget, the sales tax was imposed on retail price of sugar and cabinet decision to implement sales tax on ex-mill price would cause a positive impact on the prices of sugar and its availability.
Copyright Business Recorder, 2021