Govt raises sugar price for tax

The government on Tuesday fixed a new minimum sugar price for collecting sales tax, which will increase the per kilogram price by Rs10 to Rs15 while generating an additional Rs90 billion annually in taxes for authorities facing a yawning revenue shortfall. The Federal Board of Revenue (FBR) has issued a new statutory regulatory order (SRO) to revise the per kilogram sugar price for the purpose of collecting 18% sales tax. Through the fresh notification, it annulled the old price of Rs72.22 per kg and set a new price. The new minimum price will change every 15 days based on the weekly retail price of sugar published by the Pakistan Bureau of Statistics (PBS). The new price, effective till April 15, is Rs126 per kg—showing a 75% increase over the previously notified price. However, some mills were already paying sales tax on the basis of Rs100 to Rs110 per kg.