Commodities prices surge amid sales tax hike

In the aftermath of announcement of budget and upward revision in the Sales Tax by one percent on imported items and other locally manufactured consumer items, substantial increase in prices of most of the commodities is registered in the wholesale and retail markets of Karachi.

An overwhelming majority of traders have already jacked up rates of most of the items already lying in their stocks compelling consumers to pay higher prices.

Imported dry milk powder, which was priced at Rs 300 per kg in the open market in the pre-budget period, after one percent enhancement in the sales tax which was raised from 15 to 16 percent is now available at Rs 320.

A 140 gm packet of imported branded cheese was priced at Rs 77, and after the increase in its price, is available at around Rs 85 for the same weight.

A 360 gm of same brand of cheese earlier sold at Rs 168 is now available at Rs 184 to Rs 186 at city retail outlets.

Fareed Qureshi, General Secretary, Karachi Retailer and Grocer Group, replying to a question of the Daily Times admitted that prices of majority of items have gone up in the retail markets of Karachi. Majority of leading manufacturers of cooking oil and ghee have already indicated substantial increase in their products' price, which would come into effect during the current month. He said real impact of increase on all commodities including those imported would be in the range of 8 to 10 percent as many other exemptions on all commodities were also withdrawn by the government, consequently all stake holders including manufacturers, wholesalers, retailers and importers are bound to pay enhanced sales tax without any discrimination.

http://www.dailytimes.com.pk/default.asp?page=2008617story

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Commodities prices surge amid sales tax hike