LAHORE: The aerated beverage industry has reported up to 40 per cent reduction in sales volume after the government increased the Federal Excise Duty to 20pc from 13pc through the mini-budget in February.
Industry sources said the duty hike is adversely impacting all the manufacturing companies down the chain and may render thousands of people jobless.
“Furthermore, if these regulatory challenges persist, partners could be forced to consider factory shutdowns. These plant closures will exacerbate the loss of corporate and income revenue for the government — Rs6 to 8 billion in terms of FED collection,” warns the sources.
The country’s beverage industry is among the highest taxed in the world, with 20pc FED above and beyond the average food and beverage industry levy. Yet, in times of dollar shortages, the industry has led the investment, bringing in an estimated $200m to help improve the forex reserves of the country.
Published in Dawn, May 27TH, 2023
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