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CBR mulling to increase assessable value of sugar

JAVED MEHMOOD

ISLAMABAD: To augment revenue receipts the Central Board of Revenue (CBR) is seriously considering to increase the assessable value of sugar for the purposes of levying Sales Tax, sources told Business Recorder here on Monday.

Currently the CBR is charging Sales Tax on domestic sugar, 15 percent from the registered and 18 percent from the non-registered persons, according to previously assessed value of Rs 14 per kg.

However, as the domestic prices of indigenous sugar have increased and the CBR is facing tough revenue collection target the tax managers are considering to revise the assessable value of sugar for levying Sales Tax.

In the past the CBR used to dish out value of sugar every month in advance at the rate of Rs 14 per kg. In December last the CBR issued SRO No. 1374 notifying value of sugar for the month of January 2000, but after that period the assessable value of the commodity had not been issued by the CBR as the tax managers are consulting this issue with the Ministries of Finance and Commerce in order to revise it to generate revenue.

Sources said that for the past three months the Pakistan Sugar Mills Association (PSMA) is requesting the CBR to notify the assessable value of sugar, but so far the Association had not received any response from the tax managers.

It was learnt that the sugar industry is feeling disturbed over the mysterious silence of the CBR and fearing increase in the assessable value from the back date, causing embarrassment to the entire industry.

An official of the PSMA, when contacted, said that the CBR should notify the assessable value of sugar for the purpose of levying Sales Tax as early as possible so that the industry may not face any new confrontation with CBR.