Punjab fruit farmers vulnerable to regressive taxation measures, may go below poverty line
LAHORE: The Fruit Juice Council in a letter to PML-N President and former Prime Minister Mian Muhammad Nawaz Sharif has requested his intervention to advise the federal government to recommend abolishment of 20% Federal Excise Duty (+18% GST) on packaged fruit juices in the forthcoming Federal Budget 2024- 25, as it is directly impacting the rural economy of fruit farmers in Pakistan, especially Punjab, the value chain comprising pulping units and fruit juice manufacturers, and also threatening USD 100 million export potential till 2028.
“We are appealing to PML-N leadership, Mian Muhammad Nawaz Sharif sahib and Chief Minister Punjab
Maryam Nawaz sahiba to recommend the abolishment of 20% FED to protect the Punjab’s agricultural
sector,” said FJC representative Aatekah Mir Khan.
“The government might have increased its revenue for this year because of the high taxation regime on
juices in FY 2023-24, but this revenue will keep on falling in the coming years based on the drastic decline
in volumes of the fruit juice industry,” she remarked. “On the other hand, abolishing the FED, will result in
the government revenue increasing from Year 2,” she added.
The formal packaged juice industry, by procuring fruits is protecting the farmers’ livelihood by procuring
mangoes, kinnows and guava mainly from local farmers in Sargodha, Multan, Rahim Yar Khan, for
conversion into pulp, whereas peaches and apples are procured from Skardu and Hunza, GB and Swat, KP.
Previously fruit farmers and the packaged juice industry also appealed to the Prime Minister Muhammad
Shehbaz Sharif and Finance Minister Muhammad Aurangzeb.
