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Business Recorder
14-06-2025
- Business
- Business Recorder
Food sector: PVMA Chairman terms Federal Budget disappointing
KARACHI: Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has termed the Federal Budget 2025-26 disappointing for the food sector, particularly the ghee and cooking oil industry. Expressing serious concerns, he stated that instead of providing relief, the budget proposes measures that will increase production costs, inevitably leading to higher food inflation. While appreciating the governments move to abolish the 'non-filer' category and broaden the tax net, a long-standing demand of the business community. Sheikh Umer Rehan lamented that the core issues of the edible oil industry have been completely ignored in the budget. He highlighted that sales tax refunds have been pending for extended periods, causing severe liquidity challenges for the sector. Additionally, Section 8B of the Sales Tax Act imposes an undue financial burden by requiring manufacturers to pay extra taxes. 'If the government cannot ensure timely payment of refunds, it should at least abolish Section 8B immediately,' he asserted. Sheikh Umer also welcomed the removal of Additional Customs Duty (ACD) on imports in the budget but stressed that this benefit must be extended to the ghee and cooking oil sector. This, he argued, would not only provide relief to the struggling industry but also help reduce prices for consumers. He warned that the edible oil industry is already under immense pressure due to high import taxes, duties on raw materials, and the devaluation of the Pakistani Rupee. Now, with additional levies like the petroleum levy and carbon tax, production costs are set to increase dramatically, making it even harder for the industry to sustain operations. Sheikh Umer said that government has once again overlooked practical measures to boost domestic production of edible oils and to reduce reliance on expensive imports. He pointed out structural flaw in the government's economic planning, stating that the burden of taxation continues to fall disproportionately on the existing formal sector, particularly manufacturers, while the agriculture sector, contributing 25% to the national GDP, remains largely outside the tax net, contributing less than 1% to tax revenues. Sheikh Umer expressed disappointment that while the tax exemptions for the former FATA/PATA regions have been slightly reduced; they have not been entirely eliminated, leaving local manufacturers at a continued disadvantage. He urged the government to reduce indirect taxes and levies on essential food items, provide relief on raw material imports, and bring the agriculture sector into the tax net to ensure a more equitable tax regime. He warned that 'Without concrete measures to support the edible oil industry, controlling food inflation will remain an unattainable goal.' Copyright Business Recorder, 2025
The Star
05-06-2025
- The Star
Former abbot of Bangkok temple returns from exile to face embezzlement charges
BANGKOK: A former abbot of one of Bangkok's most prominent royal temples has returned from exile in Germany to face serious embezzlement charges linked to a major temple fund scandal that shook public faith in Thai Buddhism seven years ago. Phra Chamnong Thammajari arrives at Suvarnabhumi Airport Phra Chamnong Thammajari, formerly known as Phra Prommethi, the former abbot of Wat Samphanthawongsaram Worawihan in Bangkok's Samphanthawong district, landed at Suvarnabhumi International Airport at 6.30am on Thursday (June 5). He departed from Frankfurt at 2pm local time on Wednesday (June 4). Upon arrival, the former abbot, who appeared in a wheelchair, was escorted by officials and handed over to officers from the Anti-Corruption Division (ACD) for immediate questioning. The Anti-Corruption Division (ACD) later approved the monk's release on bail, with a cash guarantee of 400,000 baht. Police considered that Phra Prommethi was a senior monk with no intention of interfering in the investigation, and therefore granted him temporary release. Police formally charged him with money laundering and aiding state officials in committing malfeasance. - Photo: The Nation/ANN Before being released, the monk denied all charges and requested to submit a written statement at a later date instead of undergoing a verbal interrogation. Linked to major temple fund embezzlement scandal Phra Prommethi is one of seven senior monks charged in 2018 in connection with a high-profile temple development fund embezzlement case. The case involved alleged collaboration between senior monks, officials from the Office of National Buddhism (ONB), and private individuals to siphon millions of baht from funds meant for temple development. This third wave of arrests followed earlier investigations in 2017–2018, which significantly damaged public confidence in the monastic establishment. - The Nation/ANN
Business Recorder
04-06-2025
- Business
- Business Recorder
Pakistan leather industry seeks cut in import duties on chemicals
Pakistan's leather industry has proposed lowering of customs duties on the import of chemicals used in leather manufacturing, saying it will help make the sector regionally competitive and viable, it was learnt on Wednesday. Hamid Arshad Zahur, Central Chairman of the Pakistan Tanners Association (PTA), proposed to reduce customs duty from 20% to 16%, and Additional Customs Duties (ACD) from 4% to 2% across all chemical imports. The development comes as Muslims around the world are to celebrate Eid-ul-Adha this week. In Pakistan, the first day of Eid will fall on Saturday, June 7. According to Zahur, around 40% of Pakistan's total leather production is sourced through sacrifice of animals during Eid-ul-Adha. Sharing statistics, PTA central chairman said tanners received around 0.7 million animal hides, including 4.5 million goats, 2.5 million cows, 0.5 million sheep, and 25,000 camels last year. The total value of the collected hides was estimated at Rs10 billion, he said. Zahur further stated that around 25% of the hides, worth approximately Rs4 billion, were spoiled due to 'mishandling and the failure to preserve them with salt in a timely manner'. 'Tanners have been urging both the federal and provincial governments to establish proper abattoirs to prevent the wastage of hides,' he said. 'The country lost hides worth Rs4 billion due to improper handling, which constitutes 40% of total local production.' PTA central chairman emphasised that the government should establish centralised slaughterhouses for carrying out religious sacrifices similar to other Muslim countries such as Saudi Arabia, Malaysia, Türkiye, Indonesia, and others. In its budget proposals, PTA requested to keep the export sector under the original Fixed Tax Regime, but to increase the turnover tax from 1% to 1.5% to increase government revenue. Eid-ul-Adha 2025: trade peaks at Asia's largest cattle market in Karachi The leather sector is normally working at a 4-8% profit margin in general and hence a 1.5% turnover tax will actually be a net 25% tax on profit and in line with the Federal Board of Revenue's (FBR) revenue generation targets, according to the PTA. Zahur urged not to bring the export sector under the final tax regime. He opposed the proposal to apply sales tax at the import of raw materials under the Export Facilitation Scheme (EFS) in the next budget. 'This step by the FBR/Ministry of Finance will totally negate the basic principal of no duty, no drawback under which the EFS was originally developed,' he said. 'One wrong has been done last year by imposing sales tax on domestic sales under EFS and it will be a second wrong to impose sales tax on import of raw material under the EFS, going forward. 'This will lead to a cash flow crunch, defeat the very purpose of the EFS and be detrimental in increasing the exports any further,' PTA official said. He urged the government to bring the EFS back to its original form as on June 30, 2024, whereby purchase of domestic and imported raw materials under EFS was exempt from any duties or taxes. Meanwhile, PTA suggested to bring down the rate of sales tax down to 17% in the next budget from the current 18%. It also proposed minimum tax threshold for salaried individuals at Rs1.2million per annum.
Business Recorder
02-06-2025
- Business
- Business Recorder
Sindh farmers ask FBR to reduce duty on tractors
ISLAMABAD: Small farmers from Sindh have approached Federal Board of Revenue (FBR) to reduce custom duty on imported tractors from 15 percent to 5 percent under massive tariff rationalisation plan to be implemented in budget (2025-26) to support agriculture sector. Farmers have also proposed FBR Chairman Rashid Mahmood to reduce the existing sales tax rate on locally manufactured and imported tractors from 14 percent to 5 percent, enabling the farmers to purchase tractors. This is not an exemption, but only a reduced rate already applicable of many items including vehicles under Sales Tax Act. The budget proposals of the Sindh Chamber of Agriculture (SCA) Hyderabad to FBR Chairman included rationalisation of tax structure and abolishment of levy of sales tax on tractors to support agriculture sector. Sales tax on tractors, pesticides likely When contacted, sources in the FBR revealed that the proposals are under consideration of the FBR during ongoing budget preparation exercise to facilitate poor farmers of the country. The chamber stated that the approved tariff plan to be implemented in budget (2025-26) covers elimination of Additional Customs Duty (ACD); phasing out of Regulatory Duty (RD); gradual elimination of the Fifth Schedule of the Customs Act and restructuring of the customs tariff. This must cover most essential item i.e. tractor which is not a luxury item like vehicle. Nabi Bux Sathio, Senior Vice President, Sindh Chamber of Agriculture Hyderabad stated: 'We, as representatives of the farming and agricultural community in Sindh, feel compelled to shed light on the significant challenges and hardships faced by our fellow farmers and agriculturists in recent times'. The chamber stated that the agricultural sector plays a pivotal role in Pakistan's economy, contributing 24% to the GDP and employing 37.4% of the workforce. However, the sector is currently grappling with a myriad of complex issues. These include the lack of investment and support, the adverse effects of climate change, and the dwindling availability of water, exacerbating the challenges faced by farmers and agriculturists. Moreover, farmers have been severely impacted by the inability to secure fair prices for their produce. The government's announcement of support prices for wheat and cotton has not translated into actual purchases at the stipulated rates, leaving farmers with no choice but to sell their crops at significantly lower prices. The situation is further compounded by the low prices offered for rice and the potential delay in the sugar cane crushing season, which has added to the woes of the farming community. He urged the FBR to reduce the existing sales tax rate on locally manufactured and imported tractors from 14% to 5% enabling the farmers to purchase tractors, and also reduce the custom duty on imported tractors from 15% to 5% and also for re-conditional tractors. Copyright Business Recorder, 2025
Express Tribune
29-05-2025
- Business
- Express Tribune
Coffee sector for duty cuts
Listen to article Stakeholders in Pakistan's growing coffee sector are urging the government to eliminate the 28% combined Regulatory Duty (RD) and Additional Customs Duty (ACD) on bulk instant coffee imports, arguing the current levy is stifling industry growth and preventing the development of a domestic coffee market. The duties were imposed in June 2021 under SRO 840(I)/2021 and currently include a 15% RD and 2% ACD, with other charges making up the rest. Industry sources point to the disparity between coffee and tea imports, which face only a 13% duty. They also note that the tariff on raw instant coffee is disproportionately high compared to finished coffee products, which attract duties between 42% and 53%. According to industry representatives, this duty regime contradicts Pakistan's National Tariff Policy, which emphasises policy predictability, value addition, and industrial efficiency. They argue that eliminating the duties would significantly lower the landed cost of bulk instant coffee, making local manufacturing more feasible and encouraging investment in domestic processing, blending, and packaging facilities. With rising demand for coffee — driven by remote work trends and a flourishing café culture — stakeholders believe that lower raw material costs would also help bring down consumer prices and make coffee more accessible across homes and offices nationwide. They add that reducing duties would streamline the coffee supply chain, cut administrative costs, and offer consumers a wider variety of products at more competitive prices. Industry players see strong potential in exports, saying local producers could create value-added instant coffee and ready-to-drink beverages for international markets.
