ISLAMABAD, June 22: The Pakistan Vanaspati Manufacturers Association (PVMA) has demanded proportionate reduction in customs duty on imported edible oil to set off the effect of recent increase in general sales tax.

In a statement issued on Saturday PVMA denied reports of an increase of Rs10 per kg in the prices of vegetable ghee and cooking oil.

PVMA said that with the exception of one multinational company, which has its own reasons, all other member units of the association have so far raised prices by Rs2 to Rs3 per kg, after an increase of sales tax from 15 per cent to 20 percent at the import stage of the imported edible oil and levy of GST on vegetable ghee and cooking oil at the rate of 15 per cent at the manufacturing stage.

It noted that by virtue of increase in the price of edible oil in the international market since Jan 2002 increase in sales tax and levy of GST the accumulated effect works out to more than Rs9 per kg of vegetable oil. The impact of levy of GST alone would range between Rs2 to Rs3 per kg.

Other than the multinational companies, other member units of PVMA have been passing on the impact of increase in the international prices of edible oils to the consumer since January 2002.

The PVMA is on record having requested the government that if the effect of increase in the international prices on edible oils, the increase in sales tax at import stage and levy of 15 percent GST is to be neutralised, the custom duty on imported edible oil should be proportionately reduced to save the consumer from further hardship.

The PVMA would urge upon the government to consider proportionate reduction of customs duty on imported edible oils in the longer interest of the consumer whose household budgets are already under pressure.