ANNOUNCEMENT 10 Jan 2013

In January 2013, the government of Pakistan announced a reduction of excise duty for sugar exporters on their local sale and a freight subsidy for exports.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 10 Jan 2013 | Removal date: 06 Sep 2013
Still in force

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.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: No inception date

Export subsidy

The Economic Coordination Committee also announced an export subsidy of Rs. 1.75 per kg. (~USD 0.018) for 895,000 tonnes of sugar exports.

This subsidy was extended to the whole export quota of 1.2 million tonnes in March 2013 (see related State Act).