ISLAMABAD, Jan 5: Pakistan is likely to review import duty structure on palm oil by February in response to a Malaysian request to cut the tariff, a senior government official said on Friday.
“The request is already being studied intensively and the matter will be determined before the FTA (Free Trade Agreement),” said the official at the Food and Agriculture Ministry, who asked not to be named.
The two countries are expected to finalise the FTA in February Pakistan had received a request for cut in duty during a visit by Malaysian Prime Minister Abdullah Ahmad Badawi in November.
Pakistan is the world's fourth largest consumer of vegetable oil, 90 per cent of which is covered by imports, mostly of Malaysian RBD palm oil and olein. The country's domestic demand is 2.5 million tons.
Islamabad charges Rs9,550 per ton on crude palm oil import along with a 15 per cent sales tax. But refineries are allowed to import crude palm oil against a duty of Rs9,000 per ton.—Reuters
