Islamabad: The International Monetary Fund (IMF) has raised objections on tax exemption on sugar import owing to which the government has started considering withdrawing exemption on the import of sugar.
Sources said that the complete decision of sugar import could be withdrawn.
Sources said that the IMF on the violation of loan program expressed severe reservations saying that such measures could jeopardy the seven billion dollars loan program.
The government is deliberating upon withdrawing the exemption of the sugar import after objections raised by the IMF.
The government has written off all duties on an import of five lakh ton import of sugar claiming to be controling the prices of sugar.
Sources said that the tax exemption is a violation of the agreement with the IMF while the government adopted the point of view that the government imported the sugar under “food emergency” while the IMF rejected the government clarification.
The government has already imported 7.65 ton of sugar after which the prices of sugar has surpassed Rs 200 per Kg.
