Wednesday, November 6, 2024

Tea Prices Set to Rise in Pakistan as Sales Tax Increases

Following significant hikes in oil, ghee, and sugar prices, tea importers and packers in Pakistan are preparing to raise prices by Rs 100 to Rs 200 per kilogram. This increase comes in response to the Federal Board of Revenue’s (FBR) recent announcement to elevate sales tax rates on both local and imported tea.

The FBR has issued S.R.O. 1735(1)/2024, establishing a minimum retail price of Rs 1,200 per kilogram for tea to facilitate sales tax payment. This adjustment is expected to further burden consumers already grappling with rising costs of essential goods.

- Advertisement -

Local manufacturers and importers are known to pass on increased operational costs, including government-imposed taxes, directly to consumers. “When the government raises taxes, we have no choice but to adjust our prices accordingly,” said a representative from a local tea packaging company.

Industry experts caution that this trend of price increases could lead to reduced consumption, exacerbating the economic challenges faced by consumers. “As prices rise, many will be forced to cut back on non-essential items, including tea,” warned an economic analyst.

The FBR’s decision has drawn criticism from consumer advocacy groups, which argue that it disproportionately impacts low-income households. With inflation continuing to strain household budgets, the hike in tea prices is expected to add to the financial pressures faced by many Pakistanis.

Data revealed that black tea consumption in Pakistan has been estimated at 1,72,911 tonnes which is expected to increase to 2,50,755 tonnes in 2027, the FAO report projects. This showed in next 10 years, tea consumption will increase by 77,844 tonnes.

Stay updated with the latest and breaking news directly on your mobile phone by joining Headline PK's WhatsApp group!

 

 

Zubair Yaqoob
Zubair Yaqoob
Zubair Yaqoob is a senior anchor, and an investigative journalist with an impressive 37 years of experience. Zubair's journalistic journey has been marked by a relentless pursuit of truth and a commitment to delivering impactful stories.Zubair's expertise extends beyond borders, reaching as far as Malaysia, where he has left an indelible mark on the international journalism landscape. His global perspective and keen analytical skills have allowed him to navigate diverse cultural landscapes, bringing a unique and enriching perspective to his reporting.Whether he's in the studio or on the field, Zubair continues to be a driving force in the world of journalism, bridging gaps, fostering understanding, and unraveling the stories that matter most. As the Headline PK Author, Zubair remains at the forefront of news, guiding audiences through the complexities of our ever-evolving world.
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Latest stories

-Advertisement-

Highlights of the Week
Related

ASP Shehrbano Naqvi Likely to Head PCB Women’s Cricket

The Pakistan Cricket Board (PCB) is reportedly considering Syeda...

Pakistan set to launch Euro bonds as credit rating improves: Finance Minister

During a media interaction at a local hotel on...

Russia-Pakistan ties strengthen rapidly: Fedorov

The Consul General of the Russian Federation in Karachi,...

Mayor Wahab backs Unilever’s sustainable growth initiative

Mayor Karachi Barrister Murtaza Wahab, emphasized the importance of...
-Advertisement-
Join our Whatsapp Group for Exclusive News!
Join our Whatsapp Group for Exclusive News!