ST cut on sugar imports: PAC grills tax authorities over FBR's decision
PAC member Riaz Fatyana raised the issue during a session chaired by Junaid Akbar Khan, pointing out that the drastic reduction was implemented through a Statutory Regulatory Order (SRO), which he said served vested interests.
'This decision reeks of favouritism,' Fatyana said. 'It appears to have been designed to give financial advantage to specific groups.'
Committee member Sanaullah Khan Masti Khel didnot minces words, calling it a 'broad daylight robbery' and accusing the authorities of colluding with sugar cartels.
MNA Moeen Aamir Pirzada added that the practice of exporting sugar first and then importing it back was an engineered cycle designed for profit manipulation.
The committee expressed strong reservations and summoned top officials from the FBR and the Ministry of Commerce to appear in the next session to explain the rationale and legality of the tax reduction.
'This is not just mismanagement; it's systemic exploitation,' said Masti Khel.
The PAC warned that it would not let the matter slide without a thorough investigation and accountability.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
5 hours ago
- Business Recorder
Cotton fiber, yarn, greige cloth: 18% ST imposed on import?
ISLAMABAD: The Federal Government has reportedly imposed an 18 percent sales tax on the import of cotton fibre, yarn, and greige cloth, following nearly a month-long delay, amid sustained pressure from the All Pakistan Textile Mills Association (APTMA). On July 18, 2025, APTMA formally urged Finance Minister Senator Muhammad Aurangzeb to issue a Statutory Regulatory Order (SRO) immediately to implement sales tax on these imports, in line with commitments made in the Federal Budget 2025–26. In a letter to the Finance Minister, APTMA Chairman Kamran Arshad emphasised the budget's announcement that cotton fibre, yarn, and greige cloth imports would be subjected to 18 percent sales tax, while remaining under the Export Facilitation Scheme (EFS). Selective buying on cotton market 'The Federal Cabinet has approved the Finance Ministry's summary through circulation to fulfil the commitment made to APTMA,' the sources confirmed. APTMA had initially sought complete exclusion of these imports from the EFS, arguing that unrestricted imports were harming domestic industry. However, during the budget process, the government instead committed to equalizing the tax treatment of local and imported inputs used for exports, rather than removing them from the scheme altogether. The Association, in its letter, criticized the delay, noting that substantial time had passed since the budget speech and over three weeks since its formal approval. According to a decision by the Deputy Prime Minister's Committee, the tax was originally meant to take effect on July 15. APTMA warned that the delay had coincided with the arrival of Pakistan's new cotton crop, which was facing a lack of buyers due to market uncertainty. The tax disparity, they stated, had eroded demand for locally grown cotton and domestically produced yarn and greige cloth. The Association further argued that, in the absence of a level playing field, both traders and mills were reluctant to purchase the new crop. The textile sector — which accounts for over 50% of Pakistan's total exports — has shown robust growth with a $1.5 billion increase in FY 2024–25. However, the sector also saw a $1.5–$2 billion rise in imports, resulting in a net negative effect on the balance of payments. Copyright Business Recorder, 2025
Express Tribune
18 hours ago
- Express Tribune
PM approves creation of digital ecosystem at FBR
Prime Minister Shehbaz Sharif on Saturday granted approval for the formation of a modern and globally standard digital ecosystem in the Federal Board of Revenue (FBR), besides directed hiring of internationally renowned experts. During a meeting to review progress on the ongoing reforms in the FBR, the prime minister observed that the economy was moving in a positive direction due to the recent reforms in FBR. Ministers Muhammad Aurangzeb, Ahsad Khan Cheema, Minister of State Bilal Azhar Kayani, FBR Chairman, Chief Coordinator Musharraf Zaidi, economic experts and other senior officials attended the meeting, PM Office Media Wing said in a press release. The meeting was briefed on the progress regarding the formation of a modern digital ecosystem aimed at centralizing FBR's data and enabling real-time monitoring of the entire value chain. The prime minister, while chairing the meeting, emphasized that not only digitization, but a comprehensive digital ecosystem should be established to strengthen the new system and directed that all the relevant data, from raw material production and import, to manufacturing of goods and the final consumers' purchase, should be integrated into a single system. The prime minister said the system should be made so effective that the entire value chain could be monitored digitally in real time. He further opined that the centralized data collected under this system should be utilized for the economic strategic decision-making. The prime minister stressed that the goal of reducing taxes for the common man could only be achieved by increasing the tax base and ending the informal economy. Incentive scheme Prime Minister Shehbaz Sharif has decided to continue the incentive scheme for the remittances of overseas Pakistanis to Pakistan. He directed the Ministry of Finance to immediately release funds for the Workers' Remittances Incentive Scheme on priority basis. He said, "Overseas Pakistanis are our strength and a valuable asset of Pakistan." "The hard-earned remittances of overseas Pakistanis play an important role in the development of Pakistan, which the entire nation, including me, values," he added. In the fiscal year 2025, he said overseas Pakistanis played a key role in achieving the target of current account surplus for the first time in 14 years by sending a record high of $38.3 billion in remittances. These remittances not only helped pay the rising import bill but also helped increase foreign exchange reserves, he noted. He said "Overseas workers and businessmen play a crucial role in the country's development and progress by sending remittances to their homeland."
Business Recorder
20 hours ago
- Business Recorder
Cotton fiber, yarn, greige cloth: 18pc ST imposed on import?
ISLAMABAD: The Federal Government has reportedly imposed an 18 percent sales tax on the import of cotton fiber, yarn, and greige cloth, after nearly a month-long delay sustained pressure from the All Pakistan Textile Mills Association (APTMA). On July 18, 2025, APTMA had formally urged Finance Minister Senator Muhammad Aurangzeb to immediately issue a Statutory Regulatory Order (SRO) to implement the sales tax on these imports, in line with commitments made in the Federal Budget 2025–26. In a letter to the Finance Minister, APTMA Chairman Kamran Arshad emphasised the budget's announcement that cotton fiber, yarn, and greige cloth imports would be subjected to 18 percent sales tax, while remaining under the Export Facilitation Scheme (EFS). Selective buying on cotton market 'The Federal Cabinet has approved the Finance Ministry's summary through circulation to fulfil the commitment made to APTMA,' the sources confirmed. APTMA had initially sought complete exclusion of these imports from the EFS, arguing that unrestricted imports were harming domestic industry. However, during the budget process, the government instead committed to equalizing the tax treatment of local and imported inputs used for exports, rather than removing them from the scheme altogether. The Association, in its letter, criticized the delay, noting that substantial time had passed since the budget speech and over three weeks since its formal approval. According to a decision by the Deputy Prime Minister's Committee, the tax was originally meant to take effect on July 15. APTMA warned that the delay had coincided with the arrival of Pakistan's new cotton crop, which was facing a lack of buyers due to market uncertainty. The tax disparity, they stated, had eroded demand for locally grown cotton and domestically produced yarn and greige cloth. The Association further argued that, in the absence of a level playing field, both traders and mills were reluctant to purchase the new crop. The textile sector — which accounts for over 50% of Pakistan's total exports — had shown robust growth with a $1.5 billion increase in FY 2024–25. However, the sector also saw a $1.5–$2 billion rise in imports, resulting in a net negative effect on the balance of payments. Copyright Business Recorder, 2025
