The government has announced to bring sugar in the Third Schedule of Sales Tax Act, 1990 to impose sales tax on actual retail price. Finance Minister Shaukat Tarin while presenting the budget for the financial year 2021-22 announced inclusion of sugar in the third schedule. He said that sugar, although not a staple food, is still a source of daily caloric intake for millions of people in Pakistan. Recently, an unprecedented increase in the prices of sugar was witnessed; however, this increase has not resulted in corresponding increase in revenue due to that fact that for the purposes of sales tax, the value of sugar is not ad-valorem but specific that is Rs60 per kg, which is considerably below the actual market price of the commodity. To address this anomaly, sugar is proposed to be included in the Third Schedule to the Sales Tax Act so that tax is charged on the actual retail price of the product. This measure would not only ensure due payment of tax but also help in putting a more effective price control mechanism.