Monday Jun 28, 2021
LAHORE: Ghee and oil will become more expensive, with the price increasing up to Rs18 per kilogramme/litre from July 1 following budgetary taxation measures made by the government through the finance bill.
Pakistan Vanaspati Manufacturers Association (PVMA) announced the prices of different brands will jump from Rs13 to Rs18 per kilogramme/litre, depending on their respective retail prices in the market, The News reported.
The Pakistani rupee depreciated by Rs5 against the US dollar, while taxes to the tune of Rs18 per kg had been imposed in the budget, said PVMA Chairperson Abdul Waheed.
Currently, the government has been charging Rs90 per kg/litre tax on ghee and cooking oil which is the highest in the region.
An additional sales tax of 3% has also been imposed on the sale of ghee and cooking oil to unregistered buyers, wholesalers and retailers. There would be 0.1 and 0.5% withholding tax, while input sales tax adjustment of up to 90% has been allowed.
The PVMA has asked the government to allow input sales tax adjustment up to 100% so uniform tariff is imposed on the whole industry. They have also asked for the reversal of withholding tax on wholesale and retail purchase.
Additional sales tax should be abolished so that the prices of essential food items remain stable as per the wishes of the government, said Waheed.
Finance Minister Shaukat Tarin had said that taxes on important food items have been abolished, but the taxes on ghee and cooking oil have been kept intact which is a discriminatory decision, the PVMA chairperson said.
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