AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYYes
Tax-based export incentive
On 10 January 2013, the Economic Coordination Committee of Pakistan approved a reduction of the Federal Excise Duty for sugar mills in proportion to their export volume. Under the new scheme, sugar sold domestically will be charged a reduced excise duty of 0.5% up to the quantity equivalent to a quantity exported by the mill. All exceeding quantities will be taxed at the regular 8 percent. This reduced excise duty is announced as an incentive for the export quotas totaling 1.2 million tonnes announced in 2012.
A sugar export quota was next announced in September 2013, on which the reduced excise duty will not be applicable.
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