Chief co-ordinator of the cold stores Owners Association Khubaib Ahmed Khan has criticised the Punjab government decision to impose 16 percent tax on cold storages, saying that it is likely to increase in prices of fruits and vegetables for consumers. This new tax would be effective from 1st July 2016. "The owners of cold stores will pass on it to the farmers and they will pass it on to the consumer by increasing the price of fruits and vegetables 16 percent in the market.
This may result into a hue and cry on the part of general public and bad name for the government." He said farmers would avoid keeping goods in cold stores and try to sell as soon as possible to avoid the tax when the cost of keeping perishable goods in cold stores will rise. "It may end up on disappearing of fruits and vegetables from the market and will not be available for eight months and consequently the government will have to import from India," he apprehended. He said the perishable items will be available for a very limited period if the farmers start avoiding the cold stores to avoid tax.