ISLAMABAD, June 14: Pakistan Vanaspati Manufacturers’ Association (PVMA) criticized here on Saturday the provisions of the budget 2003-04, which may end up imposing the monopolistic control of a multinational company in the supply of RBD palm oil in Pakistan by reducing duty on crude palm oil (CPO).

Addressing a press conference, PVMA senior vice-chairman Maqbool-ur-Rehman and other office-bearers, therefore, demanded reduction in customs duty on RBD palm oil by Rs1,000 to provide a level-playing field for all the players in the edible oil industry.

When their attention was invited by reporters to the ever- increasing cost of edible oils for the common man, the PVMA functionaries said major factor in high prices was the fact that the government had made edible oil a major source of tax revenue. Customs duty at the rate of 15 per cent and other taxes (some of them even illegal) on edible oilseeds and finished oil brought Rs27 billion per annum.

Previous governments reduced the taxes after the rates of edible oil in world market increased in order to save the people from additional burden. Over the past two years, however, the price of palm oil had increased from $250 to $480 per ton, but the government had not reduced its levies.

As regards reduction in price by the local ghee industry, they contended that they were already selling their products at the price lower than their cost of production. As a result, 40 per cent of the industry had gone sick, they alleged.

The PVMA began its written statement by appreciating the removal of long overdue fiscal anomalies by the government in the budget pertaining to edible oil sector. It welcomed the levy of 20 per cent sales tax on both imported edible oilseeds and edible oils produced from imported edible oilseeds.

It also recorded its appreciation for reduction in warehousing surcharge on edible oils imported by vegetable ghee manufactures from one per cent to 0.5 per cent.

These measures, PVMA added, would no doubt provide a level playing field to all the stake holders. These would also boost the local edible oilseeds the production of which had declined over the past 3 years.

The PVMA demanded that 25 per cent additional custom duty be levied on the finished product.