The All Pakistan Fruit and Vegetable Exporters Association (PFVA) has sent its proposals for the next financial year to the Federal Government, seeking various tax relief measures for the fruits and vegetable and value-added industry.
The proposals include allocation of 10 crore rupees for Research & Development in context with cultivation of new variety of Kinnow, withdrawal of 10% withholding tax on juice industry, elimination of sales tax on mushrooms grown in Pakistan for promotion of mushroom production in Pakistan, reduction in fee for issuance of Phyto-sanitary certificates, withdrawal of import duty on aseptic bags used in the pulp industry and exemption of import duty on spare parts used the juice industry.
Waheed Ahmed, the Patron-In Chief of PFVA, said that these measures are necessary to reduce the cost of production and enhance the competitiveness of the industry, which is facing various challenges due to the pandemic and other factors.
He said that the Kinnow industry, which has an investment of 130 billion rupees and provides employment to 250,000 people, is suffering from declining production and exports due to aging orchards and diseases. He said that if 10 crore rupees are allocated for R&D in the next budget, the export of Kinnow can be increased to 35 crore dollars during the next four years.
He also said that the juice industry, which has a volume of 70 billion rupees, is facing a drop in sales due to the imposition of 10% federal excise duty (FED) on juices, which has shifted consumers to lower-quality and undocumented products. He said that the FED should be withdrawn in the next budget to save the industry and protect the farmers who supply fruits to the industry.
He further said that mushrooms are being imported from China and other countries to meet the local demand, while Pakistan has favorable conditions for mushroom cultivation. He said that sales tax on local mushrooms in all forms of packaging should be eliminated to encourage local production.
He also demanded that the fee for issuance of phyto-sanitary certificates, which was increased from Rs.300 to Rs.2500 in 2014, should be revised downwards to a reasonable level, as it has increased the cost of export especially for “By Air” exporters.
He also urged the government to abolish the import duty on aseptic bags used in the pulp industry, as they help preserve the produce of farmers and provide quality and safe juice products to consumers. He said that there is no substitute for imports of aseptic bags and they are subject to high rates of taxes.
He also requested the government to exempt the import duty on spare parts used in the value-added industry, as they are not available locally and are subject to up to 35% import duty and other taxes. He said that this would help reduce the cost of production and improve the competitiveness of the industry in both local and international markets.
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