Business

KCCI wants duty on milk decreased

Chief urges government to make commodity cheaper.

Our Correspondent June 02, 2015

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KARACHI: With the budget just ahead, various organisations increase their expectations from the fiscal plan. Karachi Chamber of Commerce and Industry (KCCI) President Iftikhar Ahmed Vohra has also voiced his suggestions.

He has urged the government to announce a reduction in the import duty of skimmed milk, whey milk and fat filled milk from the existing 25% to 15% for the fiscal year 2015-16.

Exchanging views with a delegation of milk powder importers and processors, led by former president KCCI Haroon Agar, Vohra stated that the government must consider this demand in order to bring down the prices of this important household commodity with a view to provide relief to the masses who are already overburdened because of inflation.

He was of the opinion that besides providing relief to the masses, the reduction in import duty of skimmed milk, whey milk and fat-filled milk would also help in dealing with smugglers who use illegal channels including the Afghan Transit Trade to supply this household product in the Pakistani markets.

“Smuggling of this essential commodity not only allows the undocumented economy to flourish but also causes severe losses to the national exchequer,” he added.

Speaking on the occasion, the delegation members of milk powder importers and processors informed that in addition to the exorbitant 25% import duty on skimmed milk, whey milk and fat-filled milk, they were also paying additional regulatory duty of 10% and 6% income tax.

Seeking KCCI’s assistance in convincing the government, they noted that smuggling of milk powder has adversely affected the businesses of legitimate commercial importers who have been making substantial contribution to the national kitty by paying customs duties and other taxes.

They said that reduction from 25% to 15% will provide some much needed relief to the entire populace of Pakistan especially infants who may become target of malnutrition due to exorbitant prices of milk powder.

Published in The Express Tribune, June 2^nd, 2015.

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COMMENTS (2)

Faisal | 9 years ago | Reply I rememebr reading a article, couple of weeks back, in which the author had argued about increasing the duty on import of milk in line with duty in India and Turkey. This was also proposed because Pakistan is self sufficient in milk production and local industry should be promoted. I agree with this point of view and beleiev reduction in duty is only to increase profit margins of few KCCI memebers because any reduction will not be passed on to the end consumer therefore the duty should be icnreased and not reduced.

know milk | 9 years ago | Reply Milk is the single most important item of human diet. Are we getting milk in its genuine state ? http://indiamilk.blogspot.in/

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