LAHORE: The Fruit Juice Council has sought intervention by the PML-N leadership to save the packaged fruit juice industry from collapse under the burden of 20pc federal excise duty (FED) imposed in the last budget.

In a letter to PML-N president and former prime minister Nawaz Sharif, it requested him to advise the federal government to abolish the FED in the forthcoming budget as it is directly impacting the economy of fruit farmers, especially Punjab, the value chain comprising pulping units and fruit juice makers, and also threatening $100 million export potential till 2028.

“We are appealing to PML-N leadership, Nawaz Sharif and Chief Minister Maryam Nawaz, to recommend the abolishment of 20pc FED to protect the Punjab’s agricultural sector,” said FJC representative Aatekah Mir Khan.

“Fruit farmers in Punjab are struggling due to low demand causing fruit wastage, and pulping units are doomed to shut, as the industry has crashed,” she warned. “With the imposition of the FED in addition to 18 per cent GST in the budget 2023-24, industry volumes plunged by 41pc,” she added.

The FJC members are fully compliant to federal and provincial food authorities and had an annual turnover of about Rs60 billion in 2022, employing more than 10,000 employees, she said.

“The government might have increased its revenue for this year because of the high taxation regime on juices in the financial year 2023-24, but this revenue will keep on falling year on year based on the drastic decline in volumes of the fruit juice industry,” she said.

On the other hand, abolishing the FED would result in the government revenue generation increasing from second year, she added.

She said that by procuring mangoes, kinnow and guava in Multan, Sargodha, Rahim Yar Khan for conversion into pulp the industry is protecting the farmers’ livelihood.­

Published in Dawn, June 7th, 2024