Pakistan Vanaspati Manufacturers Association (PVMA) has demanded reduction in federal excise duty (FED) on imported edible oils to 6 percent, saying low rate of duty will provide immediate relief to the consumers.
In a letter written to Adviser to the Prime Minister on Finance Dr Salman Shah the PVMA said FED should be reduced to 6 percent and its member units will ensure that the relief will be passed on to the consumers.
The association also raised the issue with Central Board of Revenue (CBR) Chairman Abdullah Yousuf through a letter dated May 30.
PVMA said that customs duty on imported crude palm oil (CPO) and RBD palm oil should be higher than other edible oils and its rationale was that they are hard oils having high melting point. Any minor deficiency or mishandling of these hard oils during the transportation, storage and processing can make the finished product injurious to health.
According to PVMA, the government was maintaining customs duty of Rs 10,800/ton on RBD palm oil to contain its import as compared to RBD palm olein having customs duty of Rs 9,050/ton being soft oil. The problem, it maintained, no doubt has emerged since the Budget 2004-05 when custom duty on COP was reduced to Rs 9,000/ton equivalent to soft oils like RBD palm olein and crude degummed soyabean oil ignoring the health hazards of COP/RBD palm oil.
The PVMA is of the view that high duties/taxes has made vegetable ghee/cooking oil unaffordable for the masses and should be brought down.
The association added that a balanced approach and reasonable price of edible oil and ghee will increase the consumption and subsequently improve health of the people. It said reduction in customs duty and FED on imported edible oil will not hit the government revenue, Rather it claimed, increased consumption and resultant taxes will increase the government revenue from the industry.
Comments
Comments are closed.