KARACHI: In bid to identify new taxpayers, Federal Board of Revenue (FBR) has directed the traders linked to sugar business to charge eight percent sales tax on sugar from the ‘unregistered’ customers.
The FBR has also notified minimum value of sugar for sales tax at Rs56/kilogram for local supplies and $725/metric ton for imported sugar.
Now, the retailers, wholesalers and distributors would charge eight percent sales tax on sugar from their customers as previously, sugar was charged at eight percent of federal excise duty, which was withdrawn following the approval of the budget by the parliament and replaced with the sales tax at the same rate.
Meanwhile, the FED on cigarettes was also increased and it will be reviewed twice in the six months. In this regard, large taxpayers units (LTUs) and regional tax offices (RTOs) must ensure that new FED is charged from cigarette manufacturers located within their jurisdictions.
