Edible oil importers urge duty cuts

KARACHI: Pakistan Vanaspati Manufacturers Association (PVMA) has demanded of the government to abolish additional 5 percent custom duty and 3 percent value-added tax on imported edible oils, a statement said on Wednesday.

“To promote production of oil seeds locally, 25 percent additional duty should be imposed on imported oil seeds, it would be the first step to make country self-sufficient in edible oil production,” PVMA said in a statement issued after a meeting with the traders of edible oils and vanaspati ghee.

The association noted that despite frequent announcements from the authorities and reminders from the industry, the government didn’t take back the decision which would add Rs15-20/kg in the production cost.

“Moreover, due to ambiguities in new tax initiatives, clearance of raw material was pending and causing loss to the importers as well as national exchequer,” the PVMA said.

The association added that it was also causing delay in production, which would result in supply shortages in the market.