18pc sales tax on eatables from next month

Islamabad: Chairman Federal Bureau of Revenue (FBR) Amjad Zubair Towana Saturday said that 18 percent sales tax will be imposed on processing and packaged flour, pulses, rice, sugar, and spices from the next financial year.

A meeting of the Senate Standing Committee was held under the chairmanship of Chairman Committee Saleem Mandvi Wali, in which Chairman FBR and Industry Representative Sheikh Waqar Ahmed participated.

In the meeting of the standing committee, the proposal to impose 18 percent sales tax on locally produced baby milk was considered, while the industry representative Sheikh Waqar said that the sales tax should be increased gradually, sales tax will increase the price of baby milk a lot.

Chairman FBR Amjad Zubair stated that milk companies have increased the prices of their products several times during two years. The milk companies have burdened the consumers but are not ready to give anything to the government. Investors are also not in the tax net; zero rating has been completely abolished from the next financial year.

He added that imported milk is being sold at twice the price of local milk. From the next financial year, 18 percent sales tax will be levied on processed and packaged flour, pulses, rice, sugar and spices. If we drop the 18 percent sales tax, the company will also reduce its price by 18 percent.