ISLAMABAD: The Federal Board of Revenue has proposed changes in collection of General Sales Tax on sugar and now the manufacturers would collect GST on retail price. With this step, the FBR hopes to collect an additional tax of Rs7 billion.
The FBR officials, however, said that there should be no increase in prices at the retail stage, but the prices of sweetener would be up by Rs3 to 4 per kg in the market for consumers.
Now the sugar will be treated as part of a Third Schedule item, meaning that the manufacturer would collect tax on retail price.