Centre to ask Sindh govt to remove taxes on import of wheat, sugar

ISLAMABAD: The federal government has decided to ask the Sindh government to remove taxes on the import of wheat and sugar.

According to sources, the decision was made during a meeting regarding issues related to the import of sugar and wheat through Trading Corporation of Pakistan (TCP) held under the chairmanship of federal minister for Industries and Production on September 14.

“After detailed deliberations, it was decided that the ministry will again request the government of Sindh to remove taxes on the import of the two products,” they said

It may be mentioned here that the Sindh government has imposed a 1.15 per cent cess apart from charging sales tax on wharfage services.

In this regard, the Ministry of Science and Technology shall be requested to reduce Pakistan Standards and Quality Control Authority (PSQCA) charges whereas the Ministry of Maritime Affairs shall be requested to reduce port handling charges. 

Further, both the Punjab Food Department and Trading Corporation of Pakistan (TCP) were asked to finalise a transportation mechanism and sign an agreement as well. 

It is pertinent to mention here that the Economic Coordination Committee (ECC) in its last meeting approved reducing charges from 2pc to 0.75pc on the import of wheat and sugar. 

In addition to this, sources said that the meeting also decided that TCP will negotiate a reduction of various service charges associated with import with service providers such as stevedoring @1250 PMT for handling, clearing and other charges. 

It is pertinent to note here that the federal government is importing wheat to fill the gap of 1.4mmt. 

The government has allowed private importers and TCP to import wheat while the ECC in the last meeting also gave go head to PASSCO to import 180,000-ton wheat from Russia.

The prime minister in the last cabinet meeting had also shown annoyance over the delay in the import of wheat.