The Pakistan Tea Association (PTA) has urged the Federal Board of Revenue (FBR) to remove the anomaly relating to withholding tax on import of bulk packing tea, which is a raw material for all importers.
On Monday, The association in a press release pointed out there was an ambiguity due to two different slabs for withholding tax at import stage causing revenue losses to the government.
It asked the FBR to treat tea in table 2 of 12th Schedule and charge 2pc withholding tax at import stage on all bulk packing, which would not only improve government’s revenue but will also increase legal trade.
The country’s tea imports during 9MFY21 stood at 194,962 tonnes valuing $435 million as compared to 155,372 tonnes costing $376m in the same period last year, showing a jump of 25.5pc in quantity and 15.6pc in value respectively.
The average per tonne price of tea in 9MFY21 fell to $2,231 per tonne from $2,421 in the same period last year, but despite fall in world prices and low cost of import on account of rupee appreciation against the dollar from August 2020 till to date, the consumers had not seen any drastic cut in tea prices.