ISLAMABAD - The governments decision to eliminate General Sales Tax on sugar is just a futile practice at this stage when its prices have gone beyond Rs 70 per kg, as through this practice people would hardly get relief up to Rs 3 per kg sugar, sources told TheNation on Thursday. The Economic Coordination Committee of Cabinet in its last meeting held on Tuesday under the chairmanship of Federal Minister for Finance and Economic Affairs Shaukat Tarin had decided to erase all taxes on sugar, which also includes 8pc sales tax, to lower the prices of commodity. Sugar is currently available at above Rs 70 per kg in different parts of the country. While its prices at Utility Stores Corporation has been increased to Rs 45 per kg from Rs 38 per kg a couple of days back, in order to reduce the difference between the price of sugar available at USC and the price of the commodity in the open market. The govt decision to eliminate eight per cent GST on sugar would not much decrease the prices of the commodity as its landed cost is around Rs 78/kg, and if GST is eliminated on sugar, its price would decrease by only Rs 3/kg, Chairman PSMA Iskandar Khan said while talking to TheNation. He also said that taxes on the locally produced sugar should also be withdrawn, as by doing this prices would decline in the country. He said sugar prices in int'l market are around $ 726 per metric tones and $ 25 is transportation cost which take prices near to Rs 80 per kg in the country. He said there is no role of sugar millers in soaring prices of commodity as they purchased the sugarcane at Rs 200 per 40 kg from farmers, which is a reason of higher prices. The wholesales cost of sugar is around Rs 61 per kg, he added. However, FBR did not issue any notification regarding elimination of GST on sugar. It is relevant to mention here that in August 2009 govt reduce GST to 8pc from 16 per cent for the same reason for declining its prices. Sources told TheNation that a notification in this regard would be issued by FBR after consultation with sugar mills association, said officials of Ministries.