June 26, 2023 (MLN): For the FY24 Federal Budget, a total of 59 suggestions were received for amendments to resume the IMF program. Among these amendments, an increase in Federal Excise Duty (FED) on juices from 10% to 20% was suggested.
The juices industry is already facing a significant setback as a result of global warming. Consequently, Pakistan is suffering from malnutrition, and high taxes on juices further impede the supply of essential nutrients to the people.
The government's decision to increase the Federal Excise Duty on juices will have negative consequences for both the juice industry and the agriculture sector, while also reducing the income of farmers.
While the Federal government is providing tax incentives to promote the establishment of agrotech industries, it is contradictory to impose higher taxes on juices and Federal Excise Duty, as this hampers investments in agrotech.
It is imperative for the Federal Finance Minister to address this inconsistency and bridge the gap between budget announcements and measures. The sales tax on juices and Federal Excise Duty should be reduced accordingly.
