KARACHI: Pakistan Tea Association chairman M Aman Paracha highlighted that in federal budget MRP on commercial importer of raw black tea still not waved. He said MRP is anomaly and in their budget proposals to govt and meetings in Islamabad with FBR, they assured the removal of MRP on Commercial Importer and put 3 percent additional sales tax on tea as MRP paid by commercial importer on tea cost 22.50 percent net impact which full input importer not get and it makes extra burden to consumer, as already there are 53 percent direct and indirect taxes on tea import.
Aman Paracha said govt and FBR are still confused to decide if tea import in bulk packing is a raw material or finished goods as if govt treat it in finished goods then why FBR issues exemption of wealth tax to dummy packers. How it’s possible that similar goods import in country is finished for one importer and raw material for other importer. Wealth Tax on import should be rationalize for every importer, misuse by dummy companies should be stopped which causes billion of rupees loss to govt revenue and exemptions issue by FBR that benefit not pass on to consumer as well by those companies and its unbalance the trade as such exemptions create difference in cost of Rs 30 to 40 by which legal importer can’t compete and the exempt companies sell their tea of bulk packing in local markets, so therefore, they request govt to please rationalize the wealth tax @ 2 percent for every tea importer.
The ACD on tea from last 13 years still not waived which they requested to commerce minister prior to budget as the tea is a common food, so govt should eliminate ACD to bring in poor reach.—PR
Copyright Business Recorder, 2021
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