ISLAMABAD: The Federal Board of Revenue (FBR) has notified exemption of sales tax and value-added tax on import of 500,000 tonnes of sugar, as an international tender has been floated to import at least 50,000 tonnes of the commodity by Eidul Fitr.

A sales tax notification (SRO215 of 2021) was issued here to exempt the whole of 17pc sales tax and minimum value-added tax of three per cent. This facility will only be available to the Trading Corporation of Pakistan (TCP).

The TCP will import and subsequently supply the sugar in the current season.

On commercial imports, the government has exempted only the minimum three per cent value-added tax until June 30.

Earlier on Dec 12, 2020, Prime Minister Imran Khan had publicly congratulated the relevant government agencies whose coordinated efforts helped reduce sugar prices to about Rs80per kg from well above Rs100.

Tender issued to ensure arrival of consignment by Eid

However, the prices went beyond Rs90 over the next few weeks and again touched Rs100 per kg in Lahore and Karachi.

The government would ensure a total of about 850,000 tonnes of additional sugar in the market for price stabilisation. Of this, about 500,000 tonnes would be imported through the TCP and the remaining 350,000 tonnes by the private sector i.e. sugar mills.

International tender

Meanwhile, European traders have said the TCP has issued a new international tender to purchase 50,000 tonnes of white sugar, adds Reuters.

The tender closes on March 2.

The sugar is sought packed in bags. Shipment must be arranged for arrival in Pakistan by May 15.

In 2020, too, Pakistan issued a series of sugar import tenders to stabilise prices and improve domestic supplies.

Published in Dawn, February 20th, 2021