By S.M. Inam
KARACHI: A set of official documents indicates that high taxes and duties on basic food items and essential commodities continue to be collected across the country, raising fresh questions about the cost of living burden on households.
According to the documents, white crystalline sugar is now subject to a 20 percent customs duty along with an additional 4 percent levy, while a 18 percent sales tax remains in place on vegetable ghee, cooking oil, tea, dried milk, processed foods, electricity and gas.
The filings also show that medicines are being taxed at around 1 percent sales tax, adding to the broader indirect taxation framework applied to everyday essentials.
Poultry and related food items are also affected, with chicken facing a 20 percent customs duty plus an additional 4 percent levy. Eggs are reportedly subject to duties ranging between 3 percent and 16 percent, excluding regulatory charges applied on top.
In the agriculture sector, potatoes carry a 20 percent regulatory duty, while tomatoes and onions are each subject to 5 percent customs duty. Wheat is taxed at 10 percent, with flour carrying a 5 percent customs duty as well.
Imported edible oil and soybean-related products are also heavily taxed. Raw soybean oil faces a duty of Rs10,500 per metric tonne along with an additional 2 percent customs duty, while vegetable oil is subject to Rs10,800 per metric tonne and a 10 percent regulatory duty. Raw cooking oil carries Rs8,000 per metric tonne plus an additional 2 percent duty.
The wider tax structure comes as Pakistan continues to grapple with inflationary pressures and ongoing debates over indirect taxation and its impact on lower- and middle-income households in Pakistan.
