Tuesday, June 25, 2024

Juice Industry Seeks Withdrawal of 10% Federal Excise Duty as Volumes Plunge by 45%

Juice industry pleads for the removal of 10% Federal Excise Duty imposed by the Finance Minister Ishaq Dar in the supplementary budget. Following the implementation, the sales of the juice industry faced a decline of 45%, causing huge losses.

The companies has put forward their requests of removing the imposed FED to Prime Minister Shehbaz Sharif on Thursday.

As per the statistics, the juice industry has an annual yield of more than PKR 59 billion, playing a fundamental role in the development of fruit farms. Moreover, farmers have to sell the fruits at low prices due to insufficient storage places, incompetent processing techniques, and lack of preservation facilities during the peak time. The juice industry acquiring fresh fruits from farmers benefits both the company and farmers.

According to the figures, the 5% FED imposition in 2019 resulted in diminution of industry by 23%. In addition, the imposition of 10% could also increase the prices of fruits and juices. The situation can result in more unemployment as well, negatively affecting the country’s economy.

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