ISLAMABAD: The Federal Board of Revenue (FBR) will take major enforcement action in areas bordering Iran to control the influx of smuggled Iranian cooking oil into Pakistan, putting the domestic industry at a disadvantage .
Speaking to Business Recorder here on Saturday, Abdul Waheed, former president of the Pakistan Vanaspati Manufacturers Association (PVMA), said the increase in smuggling of Iranian cooking oil into the country has prompted tax authorities and forces order to engage in a coordinated effort to stop smuggling. of Iranian products in the country.
RBF revenue collection under this heading would decrease with the availability of unhealthy, cheap and unpaid Iranian cooking oil in local markets.
Documentation is the country’s top priority and the smuggling of undocumented Iranian products into the market is a serious concern for the existing tax system. In this regard, the association sent several letters to the authorities concerned, including the FBR. Action under the relevant anti-smuggling laws is immediately needed to save local industry and of course the country’s revenue, he argued.
PVMA writes to Tarin to flood the market with ‘smuggled cooking oil of Iranian origin’
Due to the highest applicable tax structure in the region on edible oil imports into Pakistan (around Rs80/kg or Rs80000/MT), cross-border smuggling across our porous borders has become very lucrative.
Consequently, dumping of smuggled cooking oil in huge quantities has been observed in domestic markets, resulting not only in revenue deprivation for the treasury, but also in failure/challenge for sales of “made in Canada” products. Pakistan” paid in duties and taxes. indoor market.
He said that unfortunately law enforcement agencies, tax offices, district administration and managing authorities, in addition to other registration and licensing regulators, do not pay no heed to the matter, therefore, the legitimate, documented, and tax-obedient industry is seriously suffering and sustaining irreparable financial losses by losing market share.
The attractive profit margins available to the undocumented and gray implicit supply chain of contraband goods suggest that the illegal practice is likely to thrive more if left unchecked.
Waheed added that it is a universally accepted and experienced phenomenon that raw materials and finished products on which the incidence of duties/taxes and other levies are higher compared to regional and neighboring countries are subject to smuggling and, therefore, we are witnessing the same scenario. in case of edible oil.
Copyright Business Recorder, 2022