Demand for abolition of 20 percent federal excise duty on packaged juices

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Demand for abolition of 20 percent federal excise duty on packaged juices
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Demand for abolition of 20 percent federal excise duty on packaged juices

Consumers are paying 42 percent of the tax price on a carton of juice, says the Fruit Juice Council (Photo: File)

Karachi: The Fruit Juice Council called for an end to the 20 percent federal excise duty on packaged juices.

The Fruit Juice Council has demanded abolition of 20% federal excise duty on packaged juices, this demand was made by a delegation comprising representatives of the council of local and multinational companies during a meeting with Chairman FBR, Member Policy and Sales Tax.

Council representatives have revealed that the imposition of 20% FED has resulted in a major decline in the sales of packaged juices by 40%. A reduction in revenue will also result in loss of revenue.

The council said that apart from FED, 20% duty and 18% general sales tax are also imposed on juice. The council is of the view that the rural economy and the value chain of fruit juice is also affecting the local industry, 20% federal on packaged juice industry. Excise duty and 18 percent sales tax are levied, the increase in federal excise duty has reduced rather than increased government revenue.

Council representatives said that FED on juices was increased from 5% to 20% in the federal budget 2023-24. The Fruit Juice Council said that consumers are paying 42% of the price of a box of juice as tax.

Demand for abolition of 20 percent federal excise duty on packaged juices