LAHORE: A delegation from the Fruit and Vegetable Association held a meeting with Kashif Anwar, President of the Lahore Chamber of Commerce and Industry (LCCI), to address concerns arising from the recent budget decision to withdraw tax exemptions on fruit, dried fruit, and vegetables.
The delegation, including representatives Saddam Ataher Khan, Haji Muhammad Usman, Munir Bhatti, Zubair Latif, Naveed Khan, Rana Imran, along with Executive Committee member Raja Hassan Akhtar, highlighted that Pakistan imports fruit, dry fruit, and vegetables from regional and global markets. They emphasized that recent floods have already caused significant agricultural losses and they fear that removing tax exemptions will further worsen the situation.
They pointed out that people import fruit, dry fruit and vegetables from Afghanistan and enter into contracts six months prior. In the budget the tax exemption on some fruit and vegetables has ended which has triple times increased their duty. They said that earlier, a container of fruit imported from Afghanistan paid customs duty up to Rs 600,000, which has now increased up Rs 2 million. Due to this, these items will be out of reach of the common man.
They added that due to the rupee devaluation and inflation, the prices of essential commodities have already increased. Removing the recent tax exemption will further increase the prices of fruit and vegetables. They also expressed concern that those who have made heavy investments in these sectors will loose their money.
They further the LCCI President that for the last six years, fruit has been banned from coming into the country through sea routes. Therefore, fruit is brought into the country through air routes, which increases its price. In addition, the Plant Protection Department does not issue permits for fruit import, which means that smuggled fruit enters the country, increasing its price.
They said that trucks and vehicles carrying goods are being heavily fined within the country. It is necessary to understand that the volume of vegetables and fruit is high, while their weight is less, that is why they have to be packaged in such a way that they are outside the vehicles. If goods are kept inside trucks, fare cost would be out of reach.
Lahore Chamber of Commerce and Industry President Kashif Anwar demanded the government to reconsider the decision regarding withdrawal of tax exemption under SRO and businessmen associated with fruit, dry fruit and vegetables business should be given at least six months so that they can set their future strategy.
