ISLAMABAD: Government has announced reduction on Federal Excise Duty on the export of sugar from 8 to 0.5 per cent. Federal Board of Revenue has issued SRO.1072 (I)/2013 in this regard.
Sources said that through the SRO concession would only be available to the mills engaged in export of additional quantity of 500,000 tonnes of sugar as per specified quota. The reduced rate of duty shall only be applicable on the quantity of local sale of sugar equivalent to the quantity actually exported by the sugar manufacturers as per the export quota allotted and shall be available on submission of proof of such export.
This is to be in accordance with the export quota allocated in pursuance of the decision of the Economic Coordination Council in its meeting held on January 10, 2013 and decision of the ECC in its meeting held on September 7, 2013 whereby a maximum of 500,000 tons of sugar was allowed to be exported.
If a sugar manufacturer actually exports any quantity of sugar, only then the sugar manufacturer is allowed to charge the FED on equivalent quantity of local sale of sugar on supplies made in the three tax periods succeeding the tax period in which the export took place.
However, sugar manufacturer will present the proof of such export to the concerned Commissioner of Inland Revenue along with the return for the tax period following the tax period in which such export took place. This is subject to the condition that the quantity exported does not exceed the quota allotted in pursuance of the aforesaid decision of the ECC. The benefit will not be admissible in respect of exports by land routes to Afghanistan.