The Chairman of the Federal Board of Revenue (FBR), Amjad Zubair Tiwana, announced that a general sales tax of 18 percent will be applied to processing and packaged flour, pulses, rice, sugar, and spices starting from the upcoming financial year.
A session of the Senate Standing Committee was conducted under the leadership of Chairman Saleem Mandviwala, with the participation of Chairman FBR and Industry Representative Sheikh Waqar Ahmed.
During the committee meeting, the suggestion to impose an 18 percent sales tax on locally produced baby milk was deliberated upon, while Industry Representative Sheikh Waqar proposed a gradual increase in sales tax.
Chairman FBR Amjad Zubair expressed concerns over milk companies raising their product prices multiple times in the past 2 years, burdening consumers without contributing to the government.
Furthermore, distributors are not currently under the tax net, and zero rating will be completely eliminated from the next financial year.
Chairman FBR emphasized that imported milk is being sold at double the price of local milk, hence, an 18 percent sales tax will be implemented on processed and packaged flour, pulses, rice, sugar, and spices from the upcoming financial year.