Punjab’s fruit growers may fall below the poverty line, victims of regressive tax measures.
The Fruit Juice Council, in a letter written to PML-N President and former Prime Minister Mian Muhammad Nawaz Sharif, urged him to persuade the federal government to remove the 20 percent federal excise duty (+18 percent GST) on the package. Mediate and guide. Fruit juices in the upcoming federal budget 2024-25. This duty is adversely affecting the rural economy of fruit growers in Pakistan, especially in Punjab, as well as the value chain that includes pulping units and fruit juice manufacturers. The FED is also at risk for potential export earnings of US$100 million by 2028.
juice sector demands tax relief
Fruit Representative Atiqa Mir Khan said, “We appeal to the Muslim League (N) leadership, Mian Muhammad Nawaz Sharif and Punjab Chief Minister Maryam Nawaz to end the 20% FED to protect the agricultural sector of Punjab. Recommend doing.” Jos Council.
“Fruit growers in Punjab are struggling due to wastage of fruits due to low demand, and pulping units are about to close, as the industry has collapsed,” he said. “With the sudden imposition of 20% FED (in addition to 18% GST) on juices in the annual budget 2023-24, the industry volume fell to 41%,” he added.
FJC which includes industry players CitroPak, Haleeb, Nestlé, PepsiCo, Popular, Shezan and TetraPak etc. is providing consumers with safe and healthy fruit based juices. FJC members fully comply with federal and provincial food authorities and had an annual turnover of approximately PKR 60 billion in 2022, employing more than 10,000 employees.
“ریونیو اکٹھا کرنے کے لیے ایک غیر معمولی نقطہ نظر مقامی جوس، گودا اور پیکیجنگ کی صنعت کے ساتھ ساتھ اس سے وابستہ پھل کاشتکاروں کو ہلاک کرنے کے مترادف ہے۔ آخر کار ان کسانوں کو غربت کی لکیر کے نیچے دھکیل دیا جائے گا، جس سے حکومت پر بوجھ بڑھے گا،‘‘ انہوں نے کہا۔
“حکومت نے مالی سال 2023-24 میں جوس پر زیادہ ٹیکس لگانے کی وجہ سے اس سال کے لیے اپنی آمدنی میں اضافہ کیا ہو گا، لیکن یہ محصول آنے والے سالوں میں پھلوں کے رس کی صنعت کے حجم میں زبردست کمی کی بنیاد پر گرتا رہے گا۔” اس نے تبصرہ کیا. “دوسری طرف، FED کو ختم کرنے کے نتیجے میں حکومت کی آمدنی سال 2 سے بڑھے گی،” انہوں نے مزید کہا۔
The formal packaged juice industry is protecting farmers’ livelihood by procuring fruits mainly from local farmers in Sargodha, Multan, Rahim Yar Khan for pulping of mango, cano and guava, while peaches and apples. Imported from Skardu and Hunza. , GB and Swat, KP.
Earlier, fruit growers and packaged juice industry had also appealed to Prime Minister Muhammad Shahbaz Sharif and Finance Minister Muhammad Aurangzeb.
In a letter to Mian Muhammad Nawaz Sharif, the President of PML-N and former Prime Minister, the Fruit Juice Council has urged him to intervene and advise the federal government to abolish the 20% Federal Excise Duty (+18% GST) on packaged fruit juices in the upcoming Federal Budget 2024-25.
This duty is negatively impacting the rural economy of fruit Releif in Pakistan, particularly in Punjab, as well as the value chain involving pulping units and fruit juice manufacturers. Additionally, it poses a threat to the potential export revenue of USD 100 million by 2028.
“We appeal to the PML-N leadership, Mian Muhammad Nawaz Sharif sahib, and Chief Minister Punjab Maryam Nawaz sahiba to recommend the removal of the 20% FED in order to safeguard Punjab’s agricultural sector,” stated Aatekah Mir Khan, representative of the Fruit Juice Council.
“Fruit farmers in Punjab are struggling due to low demand causing fruit wastage, and pulping units are doomed to shut, as the industry has crashed,” she said. “With the sudden imposition of 20% FED on juices (in addition to 18% GST) in the Annual Budget 2023–24, industry volumes plunged by 41%,” she added.
FJC, which includes industry players CitroPak, Haleeb, Nestlé, PepsiCo, Popular, Shezan and TetraPak etc has been playing a vital role in providing safe and healthy fruit-based juices to consumers. FJC members are fully compliant to federal and provincial food authorities and had an annual turnover of about PKR 60 billion in 2022, employing more than 10,000 employees.
“A myopic approach to revenue collection is akin to killing the local juice, pulping and packaging industry as well the fruit farmers associated with it. Eventually these farmers will be pushed under the poverty line, increasing the burden on the government,” she said.
“The government might have increased its revenue for this year because of the high taxation regime on juices in FY 2023-24, but this revenue will keep on falling in the coming years based on the drastic decline in volumes of the fruit juice industry,” she remarked. “On the other hand, abolishing the FED, will result in the government revenue increasing from Year 2,” she added.