Islamabad: The Pakistan government is considering imposing a Federal Excise Duty (FED) on sugar to address a tax shortfall, news were reported on Thursday.
The Federal Board of Revenue (FBR) is struggling with a revenue shortfall exceeding Rs 50 billion for January 2025. Officials are exploring new tax measures ahead of the IMF review for the next loan tranche.
FED Proposals Sent to PM Shehbaz Sharif
Proposals to impose FED per kilogram of sugar have been forwarded to Prime Minister Shehbaz Sharif. The government is also reviewing changes to the sales tax mechanism on sugar.
Gold and Silver Rates in Pakistan on 30th January
The Minister of State for Finance, FBR Chairman, and Finance Ministry Secretary have drafted recommendations, which include a fixed sales tax regime for structured tax collection.
Possible Price Hike for Consumers
Officials suggest an excise duty of Rs 3 to Rs 4 per kg, which could raise sugar prices and burden ordinary consumers. The final decision rests with the Prime Minister’s Office.
No Immediate Decision on FED
Minister of State for Finance Ali Pervaiz denied reports of an immediate FED imposition. He clarified that while tax revisions are under review, no final decision has been made yet.
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