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June 20, 2021

Ghee, cooking oil industry’s concern: Tax exemptions to Fata, Pata termed disastrous

 
June 20, 2021

NOWSHERA: The tax exemptions given to the erstwhile Federally Administered Tribal Areas (Fata) and Provincially Administered Tribal Areas (Pata) termed disastrous for the ghee and cooking oil producing industry in the country.

“The ghee and cooking oil producing industry would face severe crisis owing to tax exemptions given to Fata and Pata in the federal budget as the government does not have the capability to restrict products within the sales tax exempt area,” Sheikh Atif Rashid, vice-chairman and owner of the Associated Industries Limited, Nowshera, said while speaking at a press conference here on Saturday.

Chief executive Shama Ghee & Cooking Oil Mills Fazal Wadood Khan, executive director Ishtiaq Ahmad Khan and others were also present.

Atif Rashid said that giving duty free facility to the industries in Fata & Pata would push the entire industrial sector into crisis as the tax-exempted products would undercut documented ghee and oil producers across the country.

It would lead to disinvestment and hurt the sentiments of the business community, he believed. The industrialist said that there was a danger of closing down 110 due to the three tax regimes levied on the products manufactured in the settled parts of the country.

He suggested the government to provide level- playing field to the industries across the country instead of levying three taxes while exempting the others.

The industries in the Special Economic Zone in Rashakai being established under the China-Pakistan Economic Corridor project were also provided duty-free facility on import of machinery and products but the rest were taxed three times.

He said that the government step was dangerous for the industrial sector, particularly for ghee and cooking oil producers hence the economic managers should look into the matter to help stop de-industrialisation, unfair competition and price distortion.

The ghee and cooking oil, he added, was the third major industry in the country contributing huge revenue to the government in taxes and duties.

He said the prime minister and ministers for finance and industries should reconsider the decision to save the ghee and cooking oil industry from ruin.