The government would apply a regulatory duty on edible oil that is imported.
A decision was made to encourage local self-sufficiency while simultaneously boosting exports.
ISLAMABAD — In an effort to encourage greater levels of self-sufficiency on the local level and to stimulate exports, the government has made the decision to levy a regulatory tariff on edible oil that is imported.
Sunflower and canola will be cultivated on a total of 600,000 acres at the local level, according to sources working within the Ministry of Food Security. Additionally, local production will be protected by an increase in taxes as a direct result of the decrease in the price of imported edible oil.
On edible oil that is brought into the country from another country, a regulatory duty of up to five percent and an extra import duty of two percent will each be levied. In addition to that, a sales tax of 17 percent will be implemented.
According to the sources working within the ministry, the imposition of taxes on imported edible oil would deter imports, and the price of 40 kilogrammes of edible oil would be set at 7,000 rupees at the local level.
More than seven billion dollars’ worth of annual savings could be realised if domestic production of edible oils were ramped up.
