Lahore:
Interested in the growing Pakistani coffee sector urge the government to eliminate 28% combined regulatory task (RD) and an additional customs duty (ACD) in instant coffee inputs, arguing that the current levy stifles the growth of the industry and the development of industry. The tasks were imposed in June 2021 under SO 840 (I)/2021 and currently include 15% RD and 2% ACD, with other charges being the rest.
Industry sources show inequality between coffee and tea imports, which only face 13%. They also note that the invoice for raw direct coffee is disproportionately high compared to final coffee products, which attract tasks between 42% and 53%.
According to industry representatives, this status of obligations contradicts Pakistan’s national tariff policy, which emphasizes policy predictability, value addition and industrial effectiveness. They argue that the elimination of duties will significantly reduce the landing cost of bulk direct coffee, making local production more feasible and encouraging investments in domestic processing, mixing and packaging facilities.
With the growing demand for coffee – driven by remote work trends and a thriving coffee culture – interested parties believe that the lowest cost of raw materials would also help reduce consumer prices and make coffee more accessible to homes and offices at national level.
They add that duties will rationalize the supply chain of coffee supply, reduce administrative expenses and provide consumers with a wider variety of products at more competitive prices. Industry players see powerful export opportunities, saying that local producers could create immediate coffee and ready -made drinks for international markets.
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