Price of ghee, cooking oil to go up by Rs18 per kg

Pakistan Vanaspati Manufacturers Association (PVMA) on Sunday warned that the price of ghee and cooking oil jump up to Rs18 per kilogram (kg) from July 1, 2021.

It has also suggested different measures government should take to control the price of ghee and cooking oil in Pakistan.

It further said that price of the price of ghee and cooking oil will hike due to the recent budget measures.

The prices of different brands will jump from Rs 13 to Rs 18 depending on their respective retail prices in the market, Chairman PVMA Abdul Waheed said.

More Read: Govt unveils details of Rs 1200 billion relief package

In a statement issued here on Sunday, he said that local currency has lost Rs5 against the US dollar while the government has imposed taxes to the tune of Rs18 per kg in the budget. Therefore, there will be no price reduction in the price of ghee and cooking oil near future.

He said that the government is getting almost Rs90 tax per kilogram of ghee and cooking oil which are the highest in the region. Consumers are already suffering and further hike in the price of ghee and cooking oil will add their miseries.

Abdul Waheed said the government had imposed a three percent additional sales tax on the sale of ghee and cooking oil to unregistered buyers, whole-sellers, and retailers will pay 0.1 and 0.5 percent withholding tax. While the government has allowed input sales tax adjustment up to 90 percent.

He demanded the government should allow input sales tax adjustment up to 100 percent in order to impose a uniform tariff on the whole industry. He further demanded to reverse withholding tax on wholesale and retail purchases.

Chaudhry called for abolishing additional sales tax so that the prices of essential food items should remain stable as per the wishes of the government.

As per the speech of the finance minister on the floor of the house, the government has abolished taxes on imported food items. While it has kept the taxes on ghee and cooking oil industry intact which is a discriminatory decision, he said.