Ghee, oil prices to go up by Rs18/kg from next month

LAHORE – The prices of ghee and edible oil will likely soar by the starting of next month despite the ease in the international markets.

Reports in local media cited that Pakistan Vanaspati Manufacturers Association announced the hike in prices from Rs13 to Rs18 per kg/litre, depending on their respective retail prices in the market.

The increase in the price came up after the budgetary taxation measures made by the incumbent government through the finance bill.

Authority Chairperson Abdul Waheed while commenting on the matter said ‘The Pakistani rupee depreciated by Rs5 against the US dollar, while taxes to the tune of Rs18 per kg had been imposed in the budget.

He further added that an additional sales tax of 3 percent has also been imposed on the sale of ghee and cooking oil to unregistered buyers, wholesalers, and retailers. The PVMA has asked the authorities to allow input sales tax adjustment up to 100 percent so a uniform tariff is imposed on the whole industry.

Additional sales tax should be abolished so that the prices of essential food items remain stable as per the government’s rhetoric, Waheed added.

Finance Minister Shaukat Tarin had said that taxes on key food items have been abolished, but the taxes on ghee and cooking oil have been kept intact which is a discriminatory decision. Meanwhile, the government has been charging Rs90 per kg/litre tax on ghee and cooking oil – the highest in the region.