ISLAMABAD: A 30 percent less export of pine nuts has inflicted a loss of almost Rs 15 million on the income tax collection.
The export of pine nuts was around $500 million during the previous financial year, however, in the current fiscal year the volume of export has reduced by 30 percent.
The FBR used to collect income tax at the rate of 1 percent from exports of pine nuts but this year, the FBR could collect income tax at the reduced ratio due to reduced volume of exports.
“In a bid to provide incentives to the export sector, the FBR has been following a zero rated tax regime in this sector, however, income tax is collected at the rate of one percent from the total volume of earning from the exports,” sources told Customs Today.
The source said that major pine nut production areas lied in Khyber Pukhtunkhwa and these were those areas where no other produce was cultivated. Poor growers were relying totally on this product for their livelihood.
But the sitting Khyber Pukhtunkhwa government levied Rs 75 per kilogram tax on produce of pine nut. This very act has hurt the financial interests of the poor and trustworthy growers of pine nuts in KP
“In result of this act, the biggest pine nut market in Bannu has also been shut down as well as small markets have also slowed down their economic and trading activity” said an insider related to the export business of pine nuts.
With the closer of pine nuts markets in KP, the poor growers are being exploited by the middleman because growers used to get a comparatively fair price of their produce in the established markets but now middlemen contact growers on their own behalf and often pay them almost 60 to 70 percent lesser price for their produces.
This state of affairs is quite alarming because the jobless labour as well as the poor growers may tend towards the non productive activities; militancy and extremism.
On the other hand, this tax levied by KP government is also playing havoc in Punjab where almost one million people associated to pine nut export sector are becoming jobless due to reduced business and exports.
Over one million people in Lahore, Faisalabad and Kasur districts earn their bread and butter from the employment like packaging, preservation, and preparation of pine nuts, but now their livelihood is also put on a stake” the insider observed.
