Dealers want tea reclassified as essential commodity

PESHAWAR: Pakistan Tea Association has urged the government to exclude tea from the “luxury items” tax category, arguing that the current classification makes it unaffordable for lower-income households.

The demand was made by the association’s members during its meeting held under the chairmanship of Ashfaq Ahmad, a former chairman KP chapter of Pakistan Tea Association and Member Executive Committee Sarhad Chamber of Commerce and Industry.

The meeting was attended by tea dealers including Mubashir Paracha, Athar Paracha, Uzar Paracha, Shahid Aslam, Khawaja Saeed, Ibrahim, Shabir Ahmad, Haroon Khawaja, Saad Parach, Tariq Abdul Basit, Asif Paracha, Sadiq Maqbool Paracha, Zubair Paracha and others.

The meeting participants demanded termination of Minimum Retail Price (MRP) of Rs 1200 on imported tea which resulted in increase in price of the commodity from Rs 250 to Rs 300.Addressing the participants, Ashfaq Ahmad said that tea had become an essential commodity, consumed by people across all socioeconomic classes from the most affluent to the poorest.

“A majority of people living below the poverty line are using tea as a broth to consume it with bread”, he added.He said if tea was excluded from the list of “luxury items” and exempted from different levies, including sales tax and Customs duty, its price would decrease and become affordable for the poor.

Ashfaq suggested inking free trade agreements with countries from where tea was imported including Kenya and Vietnam to ensure availability of tea at affordable price in the country. The KP Tea Association office-bearers believed that the government could ease financial burdens on vulnerable populations by reclassifying tea as an essential commodity and supporting local tea vendors and businesses.