The government’s decision to grant a massive sales tax exemption on sugar imports has come under sharp criticism from the Public Accounts Committee (PAC), which termed the move anti-people and designed to benefit a select few.
According to official documents, the sales tax on the import of 500,000 metric tons of sugar has been slashed from 18% to just 0.25%, while the private sector has also been exempted from the 3% value-added tax. The tax relief was granted through a recent FBR notification, prompting the PAC to demand answers.
During the PAC meeting, committee member Riaz Fatyana strongly objected to the decision, calling it a “bloodbath to reward favoured individuals.”
“500 metric tons of sugar will be imported. The financial rules have been changed and the sales tax on it will be reduced from 18% to 0.25%, which is a huge excess. The public and national treasury are being sacrificed for the benefit of a few,” Fatyana remarked. “We object to this decision that directly harms the people.”
PAC Chairman Junaid Akbar Khan echoed the concerns, pointing out that sugar mill owners already benefit from government subsidies on sugar exports, while domestic prices remain high. He said the committee wants transparency in such matters that have direct financial implications for the public.
Committee member Moin Amir noted that such practices have persisted for years without accountability. Sanaullah Mastikhel also criticized the tax relief, labeling it an anti-public move.
The PAC has summoned Federal Board of Revenue (FBR) chairman and the commerce secretary in the next meeting to provide justifications for the sales tax reduction and explain the rationale behind the SRO.
The committee fears that the 17.75% tax relief on sugar imports not only damages public interest but could also encourage hoarding and artificial price hikes in the domestic market.
