PAC Summons FBR Over Massive Tax Waiver on Sugar Imports
ISLAMABAD – The Public Accounts Committee (PAC) has raised serious concerns over a recent decision by the Federal Board of Revenue (FBR) to grant a near-total tax exemption on sugar imports, calling the move controversial and summoning top officials for an explanation.
During a recent PAC session, lawmakers questioned Statutory Regulatory Order (SRO) 1217(I)/2025, which slashed the sales tax on the import of 500,000 metric tons of white crystalline sugar from 18% to just 0.25%, marking a 99% reduction. Additionally, the 3% value-added tax (VAT) on sugar imports was also fully waived.
💼 Exemption Sparks Backlash
The tax relief is applicable to imports made by both the Trading Corporation of Pakistan (TCP) and the private sector, raising concerns that the decision could disproportionately benefit powerful business groups.
PAC members strongly criticized the policy, alleging that:
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Similar waivers in the past led to artificial price hikes
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These decisions burden consumers while benefiting influential lobbies
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The practice erodes public trust and creates market imbalances
“This isn’t just about tax relief—it’s about accountability and fairness,” one committee member noted.
📅 Next Steps and Deadlines
The committee has directed the FBR Chairman and Commerce Secretary to appear in the next PAC session to justify the decision. The tax exemption notification, issued on July 8, 2025, remains valid until September 30, 2025.
Under the same directive:
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The Commerce Division is responsible for overseeing sugar imports
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All imports must undergo quality checks by international inspection firms
This latest controversy places the spotlight on fiscal transparency and the need for balanced economic policies that protect the public interest. As sugar prices continue to affect households nationwide, decisions like these are expected to face increased public and parliamentary scrutiny.
