Traders have increased the price of different items like clothes, shoes, crockery, readymade garments and bakery products by 15 to 25 percent in the backdrop of reformed General Sales Tax (RGST) to be implemented after approval from parliament, revealed a survey conducted by Business Recorder.
Traders while talking to this scribe alleged that manufacturers have already increased the price of these items prior to the imposition of RGST by the government. Rahim-ul-Din, owner of Modern Bakers and Sweets at Aabpara Market of Islamabad said that recently bakery item producers and manufacturers like National, Mitchell and Shezan have increased the price of fruit jams, butter and other bakery items in the range of Rs 15 to Rs 20 per pack. He also alleged that price of many bakery items have increased by 20 to 25 percent after news of the likelihood of RGST imposition.
Rizwan Ahmed a garment trader said that producers of readymade garments especially winter clothing like jackets and sweaters recently increased their price by 25 percent in anticipation of the RGST. He argued that RGST might compel many a manufacturer to close his factory thereby allowing the smugglers to capture the local market.
Rizwan said that local market was filled with smuggled hosiery items, which are 50 percent cheaper than local items. He said that last year a normal quality children's suit was available at Rs 400, but this year the same readymade suit costs Rs 750. Waleed, a shoe store owner, said that Service Shoe Company recently increased price by Rs 100 per pair and all other shoe producing companies have also jacked their prices by Rs 50 to Rs 150 per pair.
Finally consumers would have to pay the additional price but under the prevailing circumstances with prices of petroleum products, natural gas and power increasing on a monthly basis people are not able to purchase quality shoes, he added. Waleed said that after the imposition of RGST shoes prices' would further increase. Anayat-ul-Rehman a crockery trader said that prices of an entire range of locally manufactured crockery recently increased by 20 to 25 percent due to multiple reasons which include the market's expectation that RGST bill would be passed by parliament.