TRADE & ECONOMY
The Government of Pakistan has reinstated an 18% General Sales Tax (GST) on sugar, a move that is expected to increase prices and put additional pressure on consumers already facing inflation.
According to reports, the decision reverses earlier tax relief measures that had significantly reduced sales tax on sugar imports in order to stabilize domestic prices and ensure adequate supply.
Officials say the restoration of the standard GST rate is part of broader fiscal adjustments and revenue measures. However, the move has already begun to impact the market, with sugar prices reportedly rising in recent days.
The earlier tax concessions had helped keep sugar prices relatively stable by lowering import costs. With the reimposition of the 18% GST, traders are likely to pass the additional cost on to consumers,
leading to further increases in retail prices.
Economic experts warn that this decision could contribute to inflationary pressure, particularly affecting low- and middle-income households, as sugar remains a basic household commodity across Pakistan.
The development comes at a time when the government is balancing fiscal challenges with efforts to control inflation and maintain supply in essential food items.