The Karachi Chamber of Commerce and Industry (KCCI) has proposed that federal excise duty (FED) on edible oil be reduced from 16 percent to 10 percent to reduce its prices in the market. In a communication to the government, the Chamber has suggested that FED drawback on export of edible oil be allowed.
The Chamber noted that it is a daily consumption item and its prices have gone up considerably in the last few months and 16 percent FED has also pushed its up and it has become out of the reach common men. The Chamber further pleaded that due to non-existence of excise duty drawback, its export is not competitive in international market.
The KCCI pointed out that previously edible oil was subjected to 15 percent sales tax plus one percent FED, which has now been amalgamated into 16 percent FED and sales tax has been abolished. The Chamber also suggested that local sale of indigenous ready meal be exempted from sales tax and rebate on export of ready meal be allowed.
KCCI noted that there is only one ready meal industry in the country based on most modern technology 'Embio' having a brand name. The industry has a vast potential for exports.
The industry is subjected to 15 percent sales tax on local supply. Moreover, rebate on export of ready meal is also not allowed. Due to this local industry is facing difficulties in competing with foreign products in domestic and international markets at competitive price.