Squeezing the juice industry

AN equitable and fair tax system is crucial for boosting investment and growth. In Pakistan, however, the sole purpose of tax policy is to collect revenues, even if it is at the cost of existing and future investments and economic growth.

Consequently, we see the proliferation of regressive indirect taxes, some of which are economically harmful because of their negative effects across the value chains of particular industries. One such example is the case of federal excise duty (FED) on the packaged fruit juice industry.