PAC Probes Sugar Import Tax Reduction

ISLAMABAD: The Public Accounts Committee (PAC) scrutinized tax officials on Wednesday regarding a contentious decision by the Federal Board of Revenue (FBR) to significantly lower the sales tax on sugar imports, from 18% to just 0.25%. The committee alleged the move was designed to benefit influential groups.

PAC member Riaz Fatyana brought up the issue during a session led by Junaid Akbar Khan, emphasizing that the steep reduction was enforced through a Statutory Regulatory Order (SRO) that he claimed served special interests.

Accusations of Favoritism and Collusion
  • “This decision reeks of favouritism,” Fatyana stated.
  • “It seems crafted to provide financial advantages to select entities.”

Committee member Sanaullah Khan Masti Khel strongly condemned the decision, labeling it a “blatant act of theft” and accusing authorities of conspiring with sugar cartels.

MNA Moeen Aamir Pirzada mentioned that the process of exporting sugar initially and then importing it back was a carefully planned cycle intended for profit manipulation.

The committee voiced serious concerns and has summoned senior representatives from the FBR and the Ministry of Commerce to attend the upcoming session to clarify the basis and legality of the tax decrease.

  • “This extends beyond simple mismanagement; it represents a systematic exploitation,” Masti Khel added.

The PAC has cautioned that it will pursue a comprehensive investigation and ensure accountability in this matter.