In a bid to safeguard the livelihoods of Punjab’s fruit farmers, the Fruit Juice Council has issued a plea to Mian Muhammad Nawaz Sharif, President of PML-N, urging intervention to alleviate the adverse effects of regressive taxation measures. The imposition of a 20% Federal Excise Duty (FED) coupled with an 18% General Sales Tax (GST) on packaged fruit juices in the forthcoming Federal Budget 2024-25 is sounding alarm bells across the rural economy.
Representing a consortium of industry giants including CitroPak, Haleeb, Nestlé, PepsiCo, Popular, Shezan, and TetraPak, the Fruit Juice Council elucidated the dire consequences of such taxation policies. Aatekah Mir Khan, spokesperson for the Council, underscored the plight of fruit farmers grappling with dwindling demand, resulting in fruit wastage and imminent closures of pulping units.
The sudden imposition of the 20% FED in the preceding Annual Budget 2023-24 precipitated a staggering 41% decline in industry volumes, exacerbating the already precarious situation for farmers and stakeholders along the value chain.
Khan emphasized the far-reaching repercussions of this myopic fiscal strategy, warning of an impending collapse of the local juice, pulping, and packaging industry, with farmers teetering on the brink of poverty. With an annual turnover of approximately PKR 60 billion in 2022 and over 10,000 employees, FJC members have been at the forefront of delivering safe and nutritious fruit-based beverages to consumers while ensuring compliance with regulatory standards.
The fruit procurement network spans regions such as Sargodha, Multan, and Rahim Yar Khan for mangoes, kinnows, and guavas, with additional sourcing from Skardu, Hunza, and Swat for peaches and apples. The symbiotic relationship between the formal packaged juice industry and local farmers underscores the imperative of preserving this ecosystem.
Previous appeals to Prime Minister Muhammad Shehbaz Sharif and Finance Minister Muhammad Aurangzeb have echoed the urgency of revisiting taxation policies to avert an impending crisis.
The Fruit Juice Council implores the PML-N leadership and Chief Minister Punjab Maryam Nawaz to champion the cause of Punjab’s agricultural sector by advocating for the removal of the 20% FED, thereby securing the livelihoods of thousands of farmers and sustaining a vital segment of Pakistan’s economy.