Senate’s finance committee rejects FED on juices industry

Govt is poised to impose 10% Federal Excise Duty (FED) on juice industry, over and above 18% GST

Web Desk 06:55 PM | 17 Feb, 2023
Senate’s finance committee rejects FED on juices industry

Senate standing committee finance and revenue has reduced the proposal to impose 10% additional FED on the juice industry to 5%, which is over above the 18% GST. The juice industry coalition jointly reached out to Prime Minister Muhammad Shehbaz Sharif, and Finance Minister Mohammad Ishaq Dar stressing that FED imposition will threaten the sector’s growth which has already seen a slump in the preceding few years.

According to industry estimates, the formal juices industry in Pakistan accounts for around 59 billion rupees of annual revenue, whereas investment in the industry is estimated to be 40 billion rupees.

Meanwhile, the fruit-growing value chain of Pakistan is improving due to the central role of the fruit juices industry. The industry’s collaboration with the farming community prevents overripe fruit from being wasted.

Moreover, due to poor storage facilities a lot of fruits are wasted in the peak season, the formal fruit industry sector helps assist with this problem of storage. The industry also helps with providing better processing and more efficient ways of fruit preservation so they are not wasted if produced in bulk. The industry facilitates the farmers’ community by working with and purchasing fruits that are especially available in surplus quantities.

Industry insiders say that another problem associated is the fragmented nature of the sector that sees a mushroom growth of smaller unregulated and informal players entering the market seasonally. “Any additional taxation will encourage the business of non-tax players that will eventually result in loss of tax revenue due to widening price gap,” an industry source stated.

The FED increases the consumer price of fruit juices encouraging the consumers to opt for the products by the non-tax paying informal sector, which sees a mushroom growth, which can be of low quality and generate lower tax revenue.

In line with local regulations (such as Punjab Food Authority), fruit drinks have a minimum of 8% fruit content, nectars have 25-50% fruit content and pure juices have 100% fruit content. In fact, fruit juices are promoted as healthier options by Food Authorities across the country for consumption in schools and colleges.

Data shared by industry representatives show sales dropped from 2018 to 2019, when the government-imposed FED, which eventually resulted in a sharp decline in sales tax revenue that could have been potentially collected for the national exchequer.

However, a waiver of FED in the subsequent year and the following two years saw the industry regain momentum.

Link to Appeal:

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Daily Pakistan Global Web Desk


Today's currency exchange rates in Pakistan - Dollar, Euro, Pound, Riyal rates on June 1, 2023

KARACHI - Following are the foreign currency exchange rates for US Dollar, Saudi Riyal, UK Pound Sterling, U.A.E. Dirham, European Euro, and other foreign currencies in Pakistan open market on June 1, 2023 (Thursday).

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar ‎USD 310.9 314.15
Euro EUR 330 333.3
UK Pound Sterling GBP 382.5 386.3
U.A.E Dirham AED 84.8 85.6
Saudi Riyal SAR 82.2 83
Australian Dollar AUD 201 203
Bahrain Dinar BHD 758.25 766.25
Canadian Dollar CAD 227 229.2
China Yuan CNY 40.26 40.66
Danish Krone DKK 41.04 41.44
Hong Kong Dollar HKD 36.39 36.74
Indian Rupee INR 3.45 3.56
Japanese Yen JPY 2.25 2.45
Kuwaiti Dinar KWD 927.17 936.17
Malaysian Ringgit MYR 61.94 62.54
New Zealand Dollar NZD 172.79 174.79
Norwegians Krone NOK 25.67 25.97
Omani Riyal OMR 740.96 748.96
Qatari Riyal ‎QAR 78.37 79.07
Singapore Dollar SGD 220 222
Swedish Korona SEK 26.36 26.66
Swiss Franc CHF 315.04 317.54
Thai Bhat THB 8.21 8.36

Today's gold rates in Pakistan – June 1, 2023

KARACHI – The price of a single tola of 24-karat gold in Pakistan is Rs 230,500 on Thursday. The price of 10 grams of 24k gold was recorded at Rs197,620.   

Likewise, 10 grams of 22k gold were being traded for Rs181,150 while a single tola of 22-karat gold was being sold at Rs 211,290.

Note: The gold rate in Pakistan is fluctuating according to the international market so the price is never been fixed. The below rates are provided by local gold markets and Sarafa Markets of different cities.

City Gold Silver
Lahore PKR 230,500  PKR 2125
Karachi PKR 230,500  PKR 2125
Islamabad PKR 230,500  PKR 2125
Peshawar PKR 230,500  PKR 2125
Quetta PKR 230,500  PKR 2125
Sialkot PKR 230,500  PKR 2125
Attock PKR 230,500  PKR 2125
Gujranwala PKR 230,500  PKR 2125
Jehlum PKR 230,500  PKR 2125
Multan PKR 230,500  PKR 2125
Bahawalpur PKR 230,500  PKR 2125
Gujrat PKR 230,500  PKR 2125
Nawabshah PKR 230,500  PKR 2125
Chakwal PKR 230,500  PKR 2125
Hyderabad PKR 230,500  PKR 2125
Nowshehra PKR 230,500  PKR 2125
Sargodha PKR 230,500  PKR 2125
Faisalabad PKR 230,500  PKR 2125
Mirpur PKR 230,500  PKR 2125


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