ISLAMABAD: State Minister for Revenue Hammad Azhar on Monday said the government has imposed a tax of only Rs3.30 per kg of sugar but it is being sold at excessive rates in the market.
“The price on which the sugar is being sold in the market is high,” he said while talking to media.
He said the government has presented a balanced budget in difficult economic conditions, the country passing through right now.
After the passage of the budget, we will conduct a survey of sugar mills with the provincial governments, Azhar said and added the crackdown will be launched against those, who will be found involved in hoarding the sugar.
State Minister for Revenue Hammad Azhar while presenting the budget in the National Assembly, on July 11 maintained that presently sugar was subject to sales tax at 8 percent.
He stressed that there was huge economic potential, but tax collection from this sector was Rs18 billion which was much lower than actual potential.
“To maximize this tax gap and to harmonize its rate with other items, it is proposed that the sales tax rate on sugar may be increased to 17 percent,” the state minister continued.
As a result of this measure, the price of sugar was expected to increase by Rs3.60 per kilogram.