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Tuesday Jun 11 2019
Web Desk

Federal Budget 2019-20 recommends Rs3.60 per kg increase in sugar price

Web Desk
The price of sugar was expected to increase by Rs3.60 per kilogramme after the sales tax increase in Federal Budget 2019-20. Photo: File 

ISLAMABAD: The Federal Budget 2019-20 was unveiled by the Pakistan Tehreek-e-Insaf (PTI) government on Tuesday.

Presenting the budget in the National Assembly, State Minister of Revenue Hammad Azhar said presently sugar was subject to sales tax at 8 per cent. The state minister stressed that there was huge economic potential, but tax collection from this sector was Rs18 billion which was much lower than actual potential.

“To maximise this tax gap and to harmonise its rate with other items, it is proposed that the sales tax rate on sugar may be enhanced to 17 per cent,” Azhar said.

Hammad Azhar added that to provide partial relief to consumers from this rate enhancement, it was being proposed that sugar may be excluded from the items on which further tax at 3 per cent is payable if supplied to unregistered persons.

As a result of this measure, the price of sugar was expected to increase by Rs3.60 per kilogramme.