Mr. Atif Ikram Sheikh, President of FPCCI, has called for immediate policy interventions and resolution of anomalies pertaining to tea imports. He has explained that tea should be considered a necessity and a basic food item for everyone—not a luxury, as is the case as per current practice at the import stage.
Mr. Atif Ikram Sheikh maintained that tea traders are suffering due to various anomalies and weaknesses in policies and regulations. Tea is wrongfully taken as a finished product at the import stage, but it is, in fact, a raw material—which is then processed, blended, packaged, and marketed. Charging approximately 70 percent in total duties and taxes on the import value of tea makes no sense. This is prohibitive and exorbitant for SMEs, he added.
FPCCI Chief added that, given the socioeconomic structure & labor-class dynamics, most of the tea is consumed in Pakistan with plain staple foods like roti or paratha by construction workers, factory labor, daily wagers and other lowest of the lowest strata of the society. Therefore, it calls for a facilitative and enabling environment for the business community to keep the prices low and stable.
Mr. Aman Paracha, VP FPCCI and former Chairman of the Pakistan Tea Association (PTA), informed that the authorities have set an unrealistic MRP for tea at PKR. 1,200 per kg, whereas tea prices start at PKR. 800 – 900. Therefore, SMEs in the tea sector have to pay taxes at 1,200 per kg, which is highly unfair and unjustified, he added.
Mr. Aman Paracha explained that if MRP is not abolished, tea prices will rise by PKR 300 per kg for consumers. He emphasized that the government should facilitate tea traders to keep tea prices at the lowest possible level while ensuring the best quality and availability.
He elaborated that the government should not set the maximum retail price at the import stage or on a customs basis for unblended tea. MRP should only be set for tea bags or the final packaged product at the import stage. Setting MRP at the import stage for unblended tea makes no economic, commercial, or regulatory sense, he added.
