Pakistan’s sugar price is Rs30 per kilogram higher than the rate in the international market, a parliamentary subcommittee on trade was informed.
According to details surfaced on Tuesday, this disclosure came during a session of the National Assembly’s Standing Committee on Commerce’s subcommittee, chaired by Convener Mirza Ikhtiar Baig.
Officials from the Federal Board of Revenue (FBR) briefed the committee on the current pricing structure of imported sugar. According to the FBR, the cost of imported sugar in Pakistan stands at Rs197.50 per kilogram, which includes 18 per cent General Sales Tax (GST). Without GST, the domestic price amounts to Rs167.50 per kilogram.
FBR officials attributed the price difference to shipping charges, which significantly raise the local price compared to the global rate.
The committee heard that the government granted a tax exemption on sugar imports only at the official level, following permission from the International Monetary Fund (IMF). No such exemption has been extended to the private sector.
The FBR confirmed that the government has so far imported 220,000 metric tonnes of sugar.
Moreover, the FBR also raised concerns that recent rains and flooding may affect sugarcane production.
