The Federal Board of Revenue (FBR) on Tuesday has issued a notification stating that withholding tax on import of 500,000 tonnes of sugar has been waived off for the Trading Corporation of Pakistan (TCP) whereas the government owned company will import and subsequently supply sugar in the current season.
According to the notification, withholding tax will be reduced to 0.25pc on commercial import of sugar from Jan 26.
It may be noted here that the government has already exempted only the minimum three per cent value-added tax until June 30 on commercial import.
The commercial import will be subject to quota of commerce division for raw sugar by the millers from Jan 26 to June 31, 2021. However, each mill will be allowed only a maximum of 50,000 tonnes. The total allocated quota for raw sugar is 300,000 tonnes.
Meanwhile, an FBR official in a separate statement on Tuesday said that the newly upgraded Fully Automated Sales Tax e-Refund (FASTER) Plus system is quick and transparent and now there is no need for zero-rating regime on sales tax for exporters, adding that each and every exporter was listed in the FASTER Plus system.
