Essentials' prices see across-the-board increase

20 Mar, 2011

Prices of essential commodities as well as other items saw an across-the-board increase after the imposition of 17 percent GST, a survey carried by Business Recorder revealed here on Saturday. After the imposition of new taxes, traders increased prices of a number of items including milk, sugar and a wide range of spices, tea, crockery, garments and home-appliances.
The milkmen in the twin cities of Rawalpindi/Islamabad increased the price by Rs 5 per kg and milk that was selling at Rs 60 per kg a week ago was now selling at Rs 65 per kg, the survey noted. Similarly, prices of all pulses are expected to go up by Rs 5 to Rs 10 per kg, traders told Business Recorder.
The manufacturers of powder turmeric and chillies have also increased prices by Rs 20 per kg and Rs 25 per kg. Powder red chillies and turmeric were selling at Rs 280 and Rs 300 per kg before the promulgation of the Presidential Ordinance, which are now selling at Rs 300 and Rs 325, respectively. Asif, a wholesaler said that sugar price has increased from Rs 3120 per 50 kg bag to Rs 3250 per 50 kg bag, while spices have also witnessed an across-the-board increase in prices of different products by Rs 5.
The survey noted that two leading tea makers have reduced the weight of the tea packs from 200 grams to 190 grams but increased the price by Rs 6 per 190-gram tea pack. A trader at Raja Bazaar said after the imposition of GST, the price of cloths and shoes have also increased, adding that a good quality shoe pair was available at Rs 1500 to Rs 2000 before the imposition of GST, which is now selling at Rs 1,600 to Rs 2,200. A normal quality Shalwar-Qameez cost Rs 500 before GST, but now it was available at Rs 600. The textile industry as well as shoe makers are expected to further increase prices due to the government decision of increase in electricity tariff by 2 percent as well as due to gas shortage, he added.
Traders said that the cigarette makers have also increased the prices of different brands by Rs 2-5 after the imposition of GST. A trader in Blue Area told this scribe that after the imposition of 17 percent GST the price of an entire range of imported as well as local crockery would be increased by 20 to 25 percent.
Withholding tax on mobile phone industry has also been increased by 15 percent after imposition of Flood Tax. Now, Rs 36 will be charged on every purchase of Rs 100 card. Cellular phone companies have informed customers about the imposition of new tax through text messages, which is being applied from March 16. According to telecom industry, under the Income Tax Amendment Ordinance 2011, withholding tax imposed on mobile phone companies will be increased from 10 to 11.50 percent.
Following the increase in Federal Excise Duty (FED) from one percent to 2.5 percent, local car makers are also all set to jack up the prices of different models of cars, said a car dealer in Rawalpindi. The government has withdrawn tax exemptions on machinery import, which would hamper industrial growth, he added. This would mean a levy of 17 percent GST on purchase of machinery and domestic sales of export-oriented items such as textiles, leather, carpets, sports goods and surgical instruments. People as well as traders have urged the government to immediately withdraw the Presidential Ordinances.

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