March 22, 2006	Wednesday	Safar 21, 1427

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ISLAMABAD, March 21: Commerce Minister Humayun Akhtar Khan on Tuesday floated a proposal of bringing down the rate of general sales tax (GST) on sugar mills from 15 per cent to a reasonable level aimed at reducing the sugar prices. Addressing a press conference he said the CBR had already collected their projected target from the sugar following massive increase recorded in the sugar price during the last few months.

However, the CBR statistics showed that the GST collection from sugar mills declined by 8.6 per during the first half of current fiscal year as against the same period of last year. The GST collection from sugar only resulted increase at import stage.

Replying to a a question, Mr Khan held Ministry of Food and Agriculture and Livestock (Minfal) responsible for not timely informing the relevant quarters about the low cane production during the current season.

Had Minfal given information in time failed to give the information in time a contingency plan could have been worked out, he said.

Replying to another question, he said that the sugar crisis had not been taken up, at least in those cabinet and Economic Coordination Committee (ECC) meetings, which he had attended.

Since the cane production was short of the target, millers could not be blamed for the current crisis, he said added “when cane is not available how could the millers produce sugar.”

The minister said that this year the expected sugar production would be in the range of 2.5 million tons. However, the country consumption stands at 4 million tons annually.

Replying to another question, he said that his ministry was not responsible for the current sugar crisis. “Commerce ministry has no role in the sugar cane issues,” he added.

The Trading Corporation of Pakistan (TCP) administratively come under the purview of commerce ministry, he said and added but TCP purchase or sell goods on the directive of ECC or cabinet headed by prime minister.

When asked about the closer of NAB’s inquiry in the sugar crisis, the minister said that he would not comment on the issue. “The government initiated the inquiry through NAB and the government stopped it,” he added.

He refused to answer the questions regarding failure of the government in handling the current sugar crisis. “I am only responsible for my own ministry,” he added.

The government had already constituted a price stabilization committee headed by adviser to prime minister.