Tea price has registered a Rs 50 a kilogram decline in the domestic market after the reduction of sales tax from 16 to 6 percent in the Budget 2012-13.
The chairman of Pakistan Tea Association Hanif Jano said that tea prices are expected to fall further due to the 10 percent reduction in sales tax as well as the stoppage of import under the Afghan Transit Trade.
He said that prices of best quality Kenyan tea in the wholesale market has come down from Rs 450 per kilo to Rs 400 a kilo. He said that soon the prices of branded tea would also decrease substantially.
However, before budget the prices of major basic necessities increased manifold created hardships for the masses.
According to a survey conducted by the scribe, huge difference was observed in last year’s and the current prices of essential goods, including milk, ghee, pulses, meat, and found that the prices of almost everything had been increased manifold and it appeared that the government sits idle while the multinational and local companies pocketed huge profits.
Fareed said that before budget the prices of commodities had shown a record increase in the four years tenure of the PPP-led government. The buyers did not have extra money to make any surplus pre-budget purchases as they had to meet other running expenses such as paying utility bills and rising transportation charges, he added.
He said the rupee devaluation against dollar and high global oil prices had caused a negative impact on domestic prices of commodities but the government had never checked whether manufacturers were really passing the impact of currency and oil as per increase or they were making price increases in view of demand and supply situation.