18% GST to be imposed on packaged food items: FBR

ISLAMABAD:  Chairman Federal Board of Revenue (FBR) Amjad Zubair Tiwana has said that 18 percent general sales tax will be imposed on processing and packaged flour, pulses, rice, sugar and spices from the next financial year. A meeting of the Senate Standing Committee was held under the chairmanship of Chairman Committee Saleem Mandviwala, in which Chairman FBR and Industry Representative Sheikh Waqar Ahmed participated. In the meeting of the standing committee, the proposal to impose 18 percent sales tax on locally produced baby milk was considered, while the industry representative Sheikh Waqar said that the sales tax should be increased gradually. Chairman FBR Amjad Zubair said that milk companies have increased the prices of their products several times during 2 years, milk companies have increased the burden on consumers but are not ready to give anything to the government. The distributors are also not in the tax net, zero rating has been completely abolished from the next financial year. Chairman FBR further said that imported milk is being sold at twice the price of local milk, from the next financial year, 18 percent sales tax will be levied on processed and packaged flour, pulses, rice, sugar and spices. [embedpost slug="world-bank-approves-150mn-loan-for-pakistan"] “If federal government leave 18% sales tax then the company should also reduce its price by 18 percent”.