ISLAMABAD: The Federal Board of Revenue (FBR) has issued a notification, S.R.O. 577(I)/2025, revising the minimum ex-mill value of white crystalline sugar, effective from April 1, 2025. This decision, made in exercise of powers conferred by the Sales Tax Act, 1990, supersedes the previous notification S.R.O. 1027(I)/2021, dated August 16, 2021.
The new minimum value will be calculated based on the average national retail price of refined sugar, as published by the Pakistan Bureau of Statistics (PBS) in its weekly sensitive price indicator (SPI), minus sixteen rupees. This adjustment will be applied for each fortnight, using the data published before the 1st and 16th of every month, respectively.
Average national retail price of refined sugar last published at PBS website (weekly sensitive price indicator - SPI) before 1st and 16th of every month minus sixteen rupees for respective fortnight starting on 1st and 16th of every month.
This change aims to align the minimum ex-mill value of sugar with current market prices, taking into account fluctuations in retail costs. By using the PBS's SPI, the FBR intends to ensure that the valuation remains responsive to changes in the market, thereby maintaining fairness and stability in the sugar industry.
The notification, signed by Anser Majeed, Second Secretary (ST&FE-Budget), underscores the government's commitment to adjusting fiscal policies in line with economic indicators. It is expected that this revision will have implications for sugar producers, retailers, and consumers alike, as it directly affects the base price for sales tax calculation on domestically produced white crystalline sugar.
Stakeholders in the sugar industry are advised to take note of this change and adjust their pricing strategies accordingly. The FBR's move reflects an ongoing effort to streamline tax regulations and adapt to the evolving economic landscape.
