Ghee and cooking oil prices are set to increase to up to Rs 18 kilogram/liter from next month following the imposition of various taxes in the FY2021-22 federal budget.
As per details, Pakistan Vanaspati Manufacturers Association (PVMA) has announced its decision to increase prices of ghee and cooking oil between Rs 13 to Rs 18 per kilogram/liter. The price hike will include various brands and will depend on respective retail prices in the market.
The price increase will come into effect from July 1.
PVMA Chairperson Abdul Waheed has said that Pakistani Rupee depreciated by Rs 5 against US dollar, whereas the federal government has also imposed taxes on the industry in its FY2021-22 budget.
Pakistan is currently charging Rs 90 per kg/litre tax on ghee and cooking oil – the highest in the region.
The federal government has imposed an additional sales tax of 3% on the sale of ghee and cooking oil for unregistered traders including wholesalers and retailers.
Furthermore, there would be 0.1 and 0.5% withholding tax, while input sales tax adjustment of up to 90% has been allowed.
PVMA has urged the federal government to allow input sales tax adjustment up to 100% so uniform tariff is imposed on the whole industry. The association has also demanded to revoke the imposition of withholding tax on wholesale and retail purchase.
