KARACHI, April 15: The first meeting of the FPCCI standing committee on sugar and allied industries, which was held on April 14, called for the abolition of sales tax on sugar, which was the only food item on which sales tax had been levied.

The meeting held under the chairmanship of Amanullah Farooq, chairman of the standing committee, noted that an estimated over one million tons of sugar would be surplus this year. He urged the government to either facilitate its export or purchase the surplus stock.

He pointed out that all the major sugar producing countries such as the US, the European Union, Brazil, Cuba, Thailand, etc., were subsidizing sugar exports, but regretted that the Pakistan government was not supporting the proposal even for self-supportive export of surplus sugar, says a press release of the FPCCI.

The meeting agreed on close collaboration and regular interaction between the FPCCI and the Pakistan Sugar Mills Association (PSMA) for resolving the problems of the sugar industry.

Shunaid Qureshi, chairman of the PSMA (Sindh Zone), called for a firm government policy on sugar export and holding of strategic stock as part of a food security programme, which would facilitate higher sugar production in future, diminish import prospects, stabilize prices, increase GDP, employment, rural development and poverty alleviation.