WHT on sugar import reduced

ISLAMABAD: The Federal Board of Revenue (FBR) has reduced withholding tax (WHT) on import of sugar to 0.25 percent from earlier 5.5 percent. Under the federal cabinet’s decision, the FBR has issued a notification regarding further amendment to Income Tax Ordinance 2001 which says the tax reduction will apply on sugar import of 300,000 tons. The tax relaxation will apply from January 26 to June 30.

Earlier, the FBR had notified exemption of sales tax and value-added tax on import of 500,000 tons of sugar. A sales tax notification was issued to exempt the whole of 17 percent sales tax and minimum value-added tax of three percent. This facility will only be available to the Trading Corporation of Pakistan (TCP).