Positive Step: Unilever welcomes reduction in GST
With prices reduced and smuggling curbed, the consumer will be the biggest beneficiary of this reduction.
KARACHI:
Unilever Pakistan welcomed the bold decision by the government of Pakistan to stem smuggling of tea and provide relief to consumers. As per SRO 608(I)2012, general sales tax on black tea has been reduced from 16% to 5%. This will lower the price of tea making it affordable for all segments of society especially those who are at the bottom of the pyramid. The reduction in sales tax will also significantly reduce the incentive to smuggle which will enhance transparency and documentation of the economy as more than half of the tea consumed in the country is smuggled under the Afghan trade transit, a complaint Unilever and others have made on various occasions. The increase in volumes of the documented sector will create a level playing field for the formal sector while also encouraging new entrants and promote healthy competition. With prices reduced and smuggling curbed, the consumer will be the biggest beneficiary of this reduction.
Published in The Express Tribune, June 5th, 2012.
Absolutely great decision. Not only on Tea but on Consumer Electronics the GST must be reduced as well as Bara Markets all over Pakistan are destroying our economy as they smuggle chinese goods and dont pay any taxes and Pakistani government should curb them as well by reducing the GST in Consumer electronics. PEL, Noble electronics, Waves, Sony, Mitsubishi and many other local companies sales are now declining because of Smuggling. Moreover I think also in Shoes GST should be reduced as Pakistani Shoe companies like Borjan, Bata and Servis are losing market share because of smuggling of shoes from chinese shoes from Afghanistan. Europe have anti dumping laws and not only we should reduce the GST for our vulnerable sector but should also impose Anti Dumping duty on those products who are a threat to our local industry.