FBR Fixes New Ex-Mill Price of Sugar

The Federal Board of Revenue (FBR) has fixed Rs. 72.22 per kg as the ex-mill value of white crystalline sugar for the purpose of assessment of sales tax. The FBR has issued S.R.O. 1027(1)12021 for the fixation of the value of the domestically produced white crystalline sugar. ALSO READ Financial Institutions to Implement New Registry as per FATF Recommendations Recently, the federal cabinet had decided that the implementation of sales tax on sugar will be at ex-mill price till November 30, 2021. The Federal Board of Revenue (FBR) has suspended the provision of sales tax collection on sugar from the manufacturers on the basis of the 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. 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. ALSO READ Finance Minister is Considering Divesting His Shares in Silkbank Ltd. 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 the last budget, the sales tax was imposed on the retail price of sugar, and the cabinet decision to implement a sales tax on ex-mill price would positively impact the prices of sugar and its availability.