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Industry calls on government to reconsider 20% FED on domestic fruit juices

Industry calls on government to reconsider 20% FED on domestic fruit juices

The request from the Fruit Juice Council (FJC) to abolish the 20% Federal Excise Duty (FED) on packaged fruit juices in the upcoming Federal Budget 2024-25 is a significant appeal aimed at addressing the challenges faced by the fruit farming and juice manufacturing sectors in Pakistan, particularly in Punjab.

The impact of the FED, along with the existing 18% Goods and Services Tax (GST), has been detrimental to the rural economy, causing distress among fruit farmers, pulping units, and juice manufacturers. The sudden imposition of these taxes in the previous budget led to a significant decline in industry volumes, highlighting the urgent need for intervention to prevent further damage.

The appeal to PML-N leadership, including Nawaz Sharif and Chief Minister Punjab Maryam Nawaz, underscores the importance of political support in addressing these issues. The FJC emphasizes the role of the packaged juice industry in providing safe and healthy products to consumers while contributing substantially to the economy and employment generation.

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The argument against the high taxation regime on juices highlights the short-term revenue gains for the government at the expense of long-term sustainability and growth in the industry. By abolishing the FED, the government stands to benefit from increased revenue in the subsequent years, while also supporting the livelihoods of fruit farmers and preserving the local juice industry.

It’s noteworthy that fruit farmers and industry stakeholders have previously appealed to Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb, indicating a collective effort to address these concerns across political and administrative levels.

Overall, the request from the FJC underscores the importance of policy interventions to support key sectors of the economy, promote sustainable growth, and protect the interests of farmers and industry stakeholders.