KARACHI : May 24,2023: A high-tax-paying industry in Karachi is facing imminent closure, exacerbating the economic crisis in the country. Prominent entities such as Toyota Indus Motors, Honda Pakistan, Suzuki Pakistan, and several textile units have already halted their operations due to financial difficulties.
Now, the tobacco and beverage industry is also considering withdrawing its investments. Reliable sources indicate that the beverage industry alone is hesitant to invest millions of dollars.
Market studies reveal that the Federal Government plans to raise the Federal Excise duty on the beverage industry, which currently stands at 20%. However, these duties are only being imposed on beverages, despite the government’s intention to increase duties on sugary products overall.
It would be more appropriate to levy duties on other sugary products such as sweets, cakes, cookies, and juices as well.
In terms of sugar consumption, the beverage industry accounts for only 7% of the total sugar production in Pakistan. The remaining 93% of consumers should also be addressed.
Industry insiders express concern about the potential increase in unemployment if the beverage industry shuts down or reduces its operations in Pakistan.
This industry serves as a significant employer, providing good-paying jobs. The government should thoroughly examine the matter to prevent the direct or indirect impact on thousands of citizens who could lose their jobs.
