GST on sugar cut by 50 per cent
ISLAMABAD: The government has reduced general sales tax on sugar by 50 per cent and fixed the ex-mill price of sugar at Rs45 per kilogram, inclusive of all taxes, for three months starting from Sunday, the first of Ramazan.
The decision was taken at a meeting chaired by Prime Minister Yousuf Raza Gilani at the Prime Ministers House on Saturday.
The meeting also decided to lift restrictions on the inter-provincial movement of sugar and wheat.
The prime minister asked the industries and production minister to ensure availability of sugar at Rs38 per kg at utility stores across the country.
Support of provincial governments has been sought to devise a monitoring mechanism.
It was decided that a meeting of the four chief ministers would be held within a fortnight to chalk out a long-term strategy for determining sugar prices.
The meeting decided to reduce GST levied on ex-mill price of sugar from 16 to eight per cent for three months.
Industries and Production Minister Manzoor Wattoo briefed the meeting about his talks on Aug 18 with representatives of the Pakistan Sugar Mills Association aimed at bringing about a reduction in sugar price.
The meeting was attended, among others, by Commerce Minister Makhdoom Amin Fahim, Food and Agriculture Minister Nazar Mohammad Gondal, Interior Minister Rehman Malik, Minister of State for Industries Dr A. Durrani, Punjab Food Minister Malik Nadeem Kamran and Senator Ishaq Dar.
According to officials, the first impact of the decision at the retailers end would be seen on Tuesday and Wednesday.
Wholesalers will buy sugar from mills on Monday as banks do not operate on Sundays and the commodity will start arriving in the retail market on Monday evening and Tuesday, said an official of the ministry of industries.
He said the provincial authorities had been authorised to fix the retail price. The retail price would range between Rs47 and Rs49.
MARKET REACTION
A survey conducted by the finance ministry found that sugar was not available at most utility stores in big cities.
The random survey of 17 utility stores in Karachi, Lahore, Rawalpindi, Islamabad and Larkana showed that sugar was not available at 14 of these outlets.
DAWN.COM | Business | GST on sugar cut by 50 per cent
ISLAMABAD: The government has reduced general sales tax on sugar by 50 per cent and fixed the ex-mill price of sugar at Rs45 per kilogram, inclusive of all taxes, for three months starting from Sunday, the first of Ramazan.
The decision was taken at a meeting chaired by Prime Minister Yousuf Raza Gilani at the Prime Ministers House on Saturday.
The meeting also decided to lift restrictions on the inter-provincial movement of sugar and wheat.
The prime minister asked the industries and production minister to ensure availability of sugar at Rs38 per kg at utility stores across the country.
Support of provincial governments has been sought to devise a monitoring mechanism.
It was decided that a meeting of the four chief ministers would be held within a fortnight to chalk out a long-term strategy for determining sugar prices.
The meeting decided to reduce GST levied on ex-mill price of sugar from 16 to eight per cent for three months.
Industries and Production Minister Manzoor Wattoo briefed the meeting about his talks on Aug 18 with representatives of the Pakistan Sugar Mills Association aimed at bringing about a reduction in sugar price.
The meeting was attended, among others, by Commerce Minister Makhdoom Amin Fahim, Food and Agriculture Minister Nazar Mohammad Gondal, Interior Minister Rehman Malik, Minister of State for Industries Dr A. Durrani, Punjab Food Minister Malik Nadeem Kamran and Senator Ishaq Dar.
According to officials, the first impact of the decision at the retailers end would be seen on Tuesday and Wednesday.
Wholesalers will buy sugar from mills on Monday as banks do not operate on Sundays and the commodity will start arriving in the retail market on Monday evening and Tuesday, said an official of the ministry of industries.
He said the provincial authorities had been authorised to fix the retail price. The retail price would range between Rs47 and Rs49.
MARKET REACTION
A survey conducted by the finance ministry found that sugar was not available at most utility stores in big cities.
The random survey of 17 utility stores in Karachi, Lahore, Rawalpindi, Islamabad and Larkana showed that sugar was not available at 14 of these outlets.
DAWN.COM | Business | GST on sugar cut by 50 per cent
