January 13, 2007	Saturday	Zilhaj 22, 1427

KARACHI, Jan 12: Chairman Central Board of Revenue Abdullah Yousuf has ruled out the possibility of cutting import duty on edible oil import as the government thinks that it will affect the revenue collection.

He was talking to a delegation of Pakistan Vanaspati Manufacturers Association (PVMA) which met him on Friday. The delegation was led by PVMA Chairman Shaikh Amjad Rasheed.

Giving details of the meeting, PVMA chairman said that the CBR chief had flatly refused to the association’s proposal of rationalising the customs duty and other taxes on imported edible oil.

“The government appears more concerned for its revenue shortages in case duty is cut on palm olein import,” Shaikh Amjad said adding that the association has been demanding of the government to rationalise tariff on edible oil import in order to offset the impact of rising international prices of palm olein.

The association had asked the CBR chief to follow the mode adopted by India, which adjusts the import duty as per fluctuation in global rates of edible oil in world markets.

He said the CBR chairman thinks that in case this situation is applied here it will create confusion.

He told the CBR chief that a reduction of Rs4,000 per ton in taxes on imported palm olein was the only way to provide relief to the common man.

The price of imported oil has been continuously increasing since January 2006.

The C&F price of palm olein was $420 per ton (Rs25,482) on an average, which increased to $623 per ton in 2007.

The landed price went up to Rs56,687 per ton in January 2007 from Rs42,090 per ton in January 2006. The price of 16kg ghee tin rose to Rs1,100-1,120 in January 2007 from Rs840 in January 2006.

The PVMA chairman said that the industry has lost its share in Afghanistan market by 50 per cent in vegetable ghee due to reduction in export rebate.

The industry people used to export 100,000-125,000 tons per annum to the neighbouring country. He said that the CBR chief said that he would look into the matter.

He said that the government was also concerned over the poor quality of ghee and cooking oil as some people are involved in direct filling of imported edible oil in the 16 kg tins.