Tareen to greatly benefit from increased sales tax on sugar

ISLAMABAD, June 12 (INP): The Pakistan Tehreek-e-Insaf (PTI) government on Tuesday presented its first Federal budget for the year 2019-20, with total outlay of Rs7.022 trillion, focusing on fiscal consolidation, revenue mobilization, austerity measures and protection to the vulnerable segments of society.

The budget proposed to enhance the rates and redefine the thresholds by abolishing the third tier introduced earlier.

The government has increased sales tax on sugar from 8 percent to 17 percent.

This will increase the sugar prices by Rs3. However, this increase will benefit the sugar mill owners.

Among the political circle, PTI leader Jahangir Tareen will be a major beneficiary of this sales tax.

Some people are of the view that Jahangir Tareen group, producing Rs22 million tonnes of sugar, will get a profit of Rs66 billion.

More items are being taken out of the Sixth schedule and brought into the tax net if sold in retail packing and with a brand name like Frozen Sausages, meat if preserved, fat filled milk and cereals other than those of wheat and meslin – FED on packaged non-aerated sugary/flavoured juices, syrups and squashes are proposed to subjected to FED at 5% of retail price.

INP/OBD