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ISLAMABAD: The Federal Board of Revenue (FBR) will take major enforcement action at the border areas of Iran to check the influx of smuggled Iranian cooking oil into Pakistan, putting the domestic industry at a disadvantageous position.

Talking to Business Recorder here on Saturday, Abdul Waheed, former chairman of Pakistan Vanaspati Manufacturers Association (PVMA) said that the increased smuggling of Iranian cooking oil in the country has promoted the tax authorities and law enforcement agencies to engage in a coordinated effort to stop the smuggling of Iranian products in the country.

The FBR’s revenue collection under this head would go down with the availability of the unhealthy, cheap, and non-duty paid Iranian cooking oil in the local markets.

The documentation is the top priority of the country and smuggling of un-documented Iranian products in the market is a serious matter of concern for the existing tax machinery. In this connection, the association has written a number of letters to the concerned authorities including the FBR. The action under the relevant anti-smuggling laws is immediately needed to save the local industry and of course revenue of the country, he maintained.

PVMA writes to Tarin for action ‘Iranian-origin smuggled cooking oil’ floods market

Due to the highest applicable tax structure in the region on imports of edible oil in Pakistan (approximately Rs80/kg or Rs80000/MT) the cross-border smuggling through our porous borders has become very lucrative.

Consequently, the dumping of smuggled cooking oil in huge quantities has been witnessed in the domestic markets, causing not only deprivation of revenue by the national exchequer but also defeating/ challenging the sales of duty/ tax paid “Made in Pakistan” products in the domestic market.

He stated that unfortunately, the law enforcement agencies, tax offices, district administration and management authorities, besides other registering and licensing regulators are not paying any heed to the issue, hence, the legitimate, documented, and tax obedient industry is seriously suffering and sustaining irreparable financial losses by losing market share.

The attractive profit margins, available to the implied un-documented and grey supply chain of smuggled goods, suggest that the illegal practice is liable to further flourish if left unattended.

Waheed added that it is a universally accepted and experienced phenomenon that raw materials and finished goods on which incidence of duty/ taxes and other levies are higher in comparison with the regional and neighbouring countries are prone to smuggling and thus, we are witnessing the same scenario in case of edible oil.

Copyright Business Recorder, 2022


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Umar Raza Khan Jan 17, 2022 09:27am
Jab Pakistan ki zaleel government itni mehngai kare gi to log Iran ka sasta cooking oil hi use Karen ge na
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Umar Raza Khan Jan 17, 2022 09:28am
Jab Pakistan ki zaleel government itni mehngai kare gi to ye to Hoga
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