Pakistan currently has a stock of 1.2 million tonnes of sugar, which is expected to run out in two months.

In order to avoid this, it has been decided to reduce taxes for the import of 300,000 tonnes of sugar.

The imported sugar will be subject to sales tax of 1% instead of 17%. Withholding tax has been reduced from 5.5% to 0.25% while value added tax was temporarily waived.

The reduction in taxes is expected to keep the sugar price in check in the local market as it is expected that the imported sugar will continue to sell at Rs80 per kg.

The ECC meeting was chaired by Adviser to the PM on Finance Abdul Hafeez Sheikh. Industry and Production Minister Hammad Azhar says the decision will improve the country’s sugar reserves and its availability in the country.