Pak govt to slash taxes on edible oil, ghee
Sunday, 10 February 2008
ISLAMABAD February 09: The Federal government has decided to reduce percentage of taxes on edible oil and ghee to bring down the sky rocketing prices of these items in the open market, official sources told Business Recorder.
The sources said that Deputy Chairman of Planning Commission Akram Sheikh and Federal Board of Revenue (FBR) had been tasked to draft separate recommendations for slashing taxes on their import and local consumption so that people could get these essential products at reasonable prices.
The Deputy Chairman of Planning Commission and FBR will submit their recommendations to caretaker Prime Minister Muhammedmian Soomro, who himself, is taking keen interest in arresting the prices of main food items.
The sources said the Ministry of Industries and Production was of the view that due to surge in palm oil prices at international level, tariff structure at import level needed to be rationalised to offset increase in price, particularly after 10 per cent reduction in import duty on the product under Pakistan-Malaysia Free Trade Agreement (FTA).
The ministry also cautioned the government that import of palm oil from Indonesia would decline, resulting in its increase from Malaysia creating monopolistic market.
The Federal cabinet had already been informed that at present 215 ghee units were functioning in the country, of which 155 were unauthorised, but the government did not take any action against them despite having complete information of their involvement in manufacturing of sub-standard products, the sources added.
The sources said the Prime Minister took serious note of the situation, and directed the Deputy Chairman of Planning Commission to involve the Ministries of Commerce, Industries and the FBR and come up with plausible suggestions to resolve the licensing issue as for as ghee manufacturers were concerned.
The cabinet was informed that at present the supply of ghee was satisfactory, but the price of palm oil in the international market was rising rapidly, which would substantially affect the prices of ghee and edible oil.
According to sources, 20,000 tons of ghee has been supplied to the Utility Stores Corporation (USC), which was selling it at Rs 67 per kilogram whereas its market price was hovering around Rs 105-120 per kilogram.
The cabinet was further told that in the world market the prices of palm oil had increased due to extraordinary buying by China and decrease in the production of Malaysian palm oil. The Industries Ministry expects that demand of edible oil would increase not only for edible oil purposes, but for other uses also.
—Internet
The sources said that Deputy Chairman of Planning Commission Akram Sheikh and Federal Board of Revenue (FBR) had been tasked to draft separate recommendations for slashing taxes on their import and local consumption so that people could get these essential products at reasonable prices.
The Deputy Chairman of Planning Commission and FBR will submit their recommendations to caretaker Prime Minister Muhammedmian Soomro, who himself, is taking keen interest in arresting the prices of main food items.
The sources said the Ministry of Industries and Production was of the view that due to surge in palm oil prices at international level, tariff structure at import level needed to be rationalised to offset increase in price, particularly after 10 per cent reduction in import duty on the product under Pakistan-Malaysia Free Trade Agreement (FTA).
The ministry also cautioned the government that import of palm oil from Indonesia would decline, resulting in its increase from Malaysia creating monopolistic market.
The Federal cabinet had already been informed that at present 215 ghee units were functioning in the country, of which 155 were unauthorised, but the government did not take any action against them despite having complete information of their involvement in manufacturing of sub-standard products, the sources added.
The sources said the Prime Minister took serious note of the situation, and directed the Deputy Chairman of Planning Commission to involve the Ministries of Commerce, Industries and the FBR and come up with plausible suggestions to resolve the licensing issue as for as ghee manufacturers were concerned.
The cabinet was informed that at present the supply of ghee was satisfactory, but the price of palm oil in the international market was rising rapidly, which would substantially affect the prices of ghee and edible oil.
According to sources, 20,000 tons of ghee has been supplied to the Utility Stores Corporation (USC), which was selling it at Rs 67 per kilogram whereas its market price was hovering around Rs 105-120 per kilogram.
The cabinet was further told that in the world market the prices of palm oil had increased due to extraordinary buying by China and decrease in the production of Malaysian palm oil. The Industries Ministry expects that demand of edible oil would increase not only for edible oil purposes, but for other uses also.
—Internet