FPCCI demands withdrawal of duty, taxes on edible oil

Staff Reporter BOL News

18th Oct, 2021. 06:42 pm

Logo of the FPCCI. Photo: File

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) president Mian Nasser Hyatt Maggo has expressed concerns over the surging and unbearable food inflation in the country; and, the resultant unrest among the masses.

He said the edible oil prices are one of the biggest contributors to the skyrocketing food inflation in the country. This pattern of food inflation is unsustainable for any country of the world and the government should act decisively to control the inflation in the national interest, he added.

The FPCCI chief said if the government withdraws Customs duty of Rs9,180/tonne, 17 per cent federal excise duty, 2 per cent additional Customs duty, 5 to 6 per cent adjusted sales tax after value addition and 2 per cent income tax only for six months, the edible oil prices will come down by up to 25 per cent to 30 per cent immediately and there will be considerable downward balancing effect on the overall food inflation, as well.

FPCCI vice president Nasir Khan said that the neighbouring and regional countries had already started to withdraw sales tax, import and other duties on edible oils to give the much-needed relief to their people.

Khan emphasised that the government should move in a timely manner and make decisions swiftly to control the damaging effects of the food inflation and the rupee-dollar parity; and, protect those segments of the society who were already living below the poverty line.

The edible oils had already crossed Rs390/mark and will continue to rise even further in given circumstances; if, remained unattended. The government is in a position to offer approximately Rs75/kg relief to the people immediately on account of taxes and duties, he added.

Maggo requested Adviser to the prime Minister on Finance Shaukat Tarin to immediately intervene and sit down with the edible oil manufacturers from the platform of the apex representative body of the FPCCI to work out a radical; yet, pragmatic plan in accordance with the ground realities to bring down the edible oil prices with immediate effect.