Reduction in ST on black tea: leading brands welcome government decision

Tuesday, June 5, 2012

Leading tea brands in Pakistan, Lipton, Brooke Bond Supreme, Pearl Dust and A1 welcomed the bold decision by the Government of Pakistan to stem smuggling of tea and provide relief to consumers. As per SRO 608(I) 2012, General Sales Tax on black tea has been reduced from 16 percent to 5 percent.

This will lower the price of tea, which is the staple drink of millions of Pakistanis, making it affordable for all segments of society especially those who are at the bottom of the pyramid. The reduction in sales tax will also significantly reduce the incentive to smuggle which will enhance transparency and documentation of the economy.

The increase in volumes of documented sector will create a level playing field for the formal sector while also encouraging new entrants and promote healthy competition. With prices reduced and smuggling curbed, the consumer will be the biggest beneficiary of this reduction.

Source: Business Recorder (link opens in a new window)

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