Government Announces to Start A Crackdown on Sugar Mill Owners
ISLAMABAD: On Monday, the Government announced that it would artificially raise crackdown of sugar millers engaged in hoarding to bag billions of rupees from customers.
After an increase in the government's overall sugar sales tax from 8 to 17%, with the government budget, 2019-20 was announced. However, without waiting for authorization of the budget by the Parliament currently discussing the budget, the sugar millers have already increased rates.
In a meeting of the National Assembly of Agriculture Products, chaired by National Assembly Speaker Asad Qaiser, Minister of State for Revenue Hammad Azhar, said that the government would raide the sugar mills that artificially extracted commodities and increased prices.
“No new tax has been imposed on flour and ghee in the budget,”
He stressed that the various lobbies ' impact on budgetary preparation was rejected.
Prime Minister's commerce Advisor, Abdul Razak Dawood, said that there was an artificial rise in sugar rates by adding that cotton farmers had turned into sugarcane crops for improved returns.
Hammad also discussed tax levies on the cigarettes production sector, claiming that in the next financial year 2019-20 this would produce revenues of Rs140 billion. He said that the Government expects the cigarette industry to collect Rs115 billion in 2019.
He pointed out that the tax rise on tobacco crops was removed in an effort to provide farmers with relief. The tax rate on cigarette packs was, however, increased.
In category 1 national excise and customs duties were increased by Rs 14 on cigarette pack and Rs8 increased in category 2 cigarette pack. The trade advisor criticized the state for abolishing the zero-rated sales tax facility while supporting textile barons. He also refused to re-impose duties on imports of cotton in order to relieve textile millers.
Dawood considered that the textile industry should not be accused of dismissing the zero-rated facility in the five main export industries in the budget.
He called it a false choice and wondered where the textile sector was going now. He called it something large that had done to the industry. He proposed a cost that was consistent with the global industry should be granted for cotton cultivation.
“Duties on cotton import are removed when prices in the domestic market start rising. Farmers are discouraged by lower prices,”