A delegation from the Fruit and Vegetable Association recently engaged with Kashif Anwar, President of the Lahore Chamber of Commerce and Industry (LCCI), to deliberate on the implications of the recent budget amendment that saw the withdrawal of tax exemptions on fruit, dried fruit, and vegetables. The delegation voiced concerns over the impact of this policy change, especially in the aftermath of devastating floods that have already strained Pakistan's agricultural sector.
The group underscored the reliance on imports for these commodities, noting the pre-existing contracts with suppliers, particularly from Afghanistan, that are now subject to a tripling of duty costs. They revealed that the duty on a container of imported fruit has surged from Rs 600,000 to Rs 2 million, potentially making these essential items unaffordable for the average consumer. Furthermore, they highlighted the adverse effects of the rupee's devaluation and inflation on the prices of essential goods, with the recent tax adjustments poised to exacerbate these issues.
Concerns were also raised about the logistical challenges faced by importers, including the six-year ban on sea imports of fruit, necessitating more expensive air freight options, and the lack of permits for fruit imports from the Plant Protection Department, which inadvertently promotes the smuggling of these commodities.
In response, LCCI President Kashif Anwar called on the government to revisit the decision to withdraw the tax exemption, suggesting a grace period of at least six months for businesses to adjust their strategies accordingly.
[ Rs 100 = €0.33 ]
Source: app.com.pk