Islamabad, Jan 30: The government is evaluating a proposal to impose a Federal Excise Duty (FED) of Rs 3-4 per kilogram on sugar, which could lead to higher consumer prices, sources reveal. The proposal, along with potential amendments to the sugar sales tax mechanism, has been forwarded to the Prime Minister for review.
Potential Taxation Changes
The proposed taxation adjustments include revising the fixed sales tax system on sugar. If approved, these changes would directly impact sugar pricing and could lead to an increase in retail costs. This move is part of broader fiscal measures aimed at increasing government revenue.
Government’s Stance on FED Implementation
While the proposal is under consideration, Minister of State for Finance Ali Pervez has clarified that no immediate decision has been made regarding the FED imposition. He emphasized that the final decision rests with the Prime Minister’s Office, and further revisions to the taxation plan are likely.
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Consumer Impact & Market Reactions
If the FED is enforced, sugar prices may rise, burdening consumers already facing inflationary pressures. The market response is mixed, with stakeholders in the sugar industry closely monitoring developments. Analysts suggest that any new taxation must balance revenue generation with consumer affordability.
Final Decision Awaited
The government continues to deliberate on the proposal, and changes may still occur before a final verdict is announced. For now, consumers and industry players await official confirmation on the new taxation framework.
