Fruit Juice Council Appeals for Tax Relief to PML-N President

The Fruit Juice Council has reached out to PML-N President Mian Muhammad Nawaz Sharif, requesting the elimination of the 20% Federal Excise Duty (+18% GST) on packaged fruit juices in the upcoming Federal Budget 2024-25. This tax imposition has been negatively affecting the rural economy of fruit farmers in Pakistan, particularly in Punjab, as well as the pulping units and fruit juice manufacturers in the value chain.

The council emphasizes that the current tax policy is not only harming local farmers and industry players but also putting at risk the potential USD 100 million export market until 2028. The industry has already experienced a significant 41% decline in volumes following the introduction of the 20% FED in the Annual Budget 2023-24.

In response to these challenges, the council is urging the PML-N leadership, including Mian Muhammad Nawaz Sharif and Chief Minister Punjab Maryam Nawaz, to advocate for the removal of the tax to protect Punjab's agricultural sector. Fruit farmers are facing reduced demand, leading to wastage, while pulping units are on the verge of closure, posing a threat to the entire industry.

The council warns that the government's short-term revenue gains from high taxation on juices will result in long-term revenue decline due to reduced industry volumes. Conversely, abolishing the FED would not only benefit the industry but also lead to increased government revenue from the second year onwards.

The formal packaged juice industry plays a vital role in supporting farmers' livelihoods by sourcing fruits locally from regions like Sargodha, Multan, Rahim Yar Khan, Skardu, Hunza, and Swat. Previous appeals have been made to Prime Minister Muhammad Shehbaz Sharif and Finance Minister Muhammad Aurangzeb regarding this issue.

The Fruit Juice Council's plea to remove the tax on packaged fruit juices highlights the urgent need to support local farmers and industry stakeholders. By addressing this issue, not only can the industry thrive, but it can also contribute to the economic growth of Punjab and Pakistan as a whole.