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
Official press release
The Tribune Epaper 11 January 2013
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.
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).